BRAVO issues $365m non-QM securitization

by Ryan Smith18 Aug 2020

Fitch has issued ratings on a $365.74 million securitization issued by BRAVO Residential Funding Trust. The securitization, BRAVO 2020-NQM1, is made up primarily of non-QM loans.

The mortgage pool consists of 806 loans with an interest-bearing balance of $365.74 million. The loans in the pool were originated primarily by First Guaranty Mortgage Corporation, Caliber Home Loans, and LoanStream Mortgage, and are serviced primarily by Rushmore Loan Management Services.

About 74% of the loans in the pool are designated as non-QM. For the remaining 24%, the Ability to Repay rule does not apply, or the loans are designated as Safe Harbor QM or Higher Priced QM.

“The loans were acquired by an investment vehicle managed by PIMCO, which have a long operating history of aggregating residential mortgage loans,” Fitch said. “PIMCO is assessed as ‘Above Average’ by Fitch as an aggregator.”