A residential mortgage-backed securities transaction includes nearly $2.7 billion in jumbo and agency loans from JPMorgan Chase & Co. units.
Chase Mortgage Trust 2016-2, otherwise known as CMT 2016-2, includes 8,953 prime jumbo and agency conforming loans for $2.65 billion.
The agency and non-agency mortgages were originated by JPMorgan Chase Bank, N.A., or by its correspondent clients based on its guidelines.
Fitch Ratings, which
discussed the transaction in anticipation of it rating CMT 2016-2, called Chase an above-average originator. That assessment was based on Fitch’s review of Chase’s origination platform for agency and non-agency loans.
Conforming loans account for 55 percent of the loans, and prime-quality non-conforming mortgages make up the other 45 percent.
Seasoning stands at roughly 12 months, and loan terms are as long as 30 years.
Loan-level due diligence was performed by AMC Diligence LLC and Opus Capital Markets Consultants on all of the non-conforming loans. A statistical sample of the agency loans were sampled.
“The diligence results showed minimal findings with some nonmaterial exceptions or waivers,” the New York-based ratings agency wrote. “All such findings were sufficiently mitigated with compensating factors.”
