"Morningstar DBRS assigned provisional ratings to the notes, with the senior Class A notes rated AAA and subordinate tranches rated from AA (low) to BBB (high). The ratings reflect the deal's sequential structure, credit enhancement from subordinate bonds, and stress testing tied to home-price declines, borrower longevity and interest rates. About two-thirds of the collateral is concentrated in California, with borrowers averaging 76 years old. The loans are nonrecourse, meaning losses are capped at the value of the underlying homes."
"The transaction was first reported by Inside Mortgage Finance. A representative from Mutual of Omaha told HousingWires Reverse Mortgage Daily that the company doesn't have any additional information to provide at this time. Morningstar DBRS reviewed Mutual of Omaha Mortgage, Inc. and found the company to be an acceptable originator; Morningstar DBRS reviewed Celink and found the company to be an acceptable subservicer, the report states."
Mutual of Omaha executed a reverse mortgage securitization with Morningstar DBRS assigning provisional ratings, including AAA for the senior Class A notes and AA (low) to BBB (high) for subordinate tranches. Ratings reflect the deal's sequential structure, credit enhancement from subordinate bonds, and stress testing for home-price declines, borrower longevity and interest rates. About two-thirds of the collateral is concentrated in California and borrowers average 76 years old. The loans are nonrecourse, capping losses at the value of the underlying homes. Celink serves as the subservicer for the loan collateral, and Morningstar DBRS found both originator and subservicer acceptable.
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