NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to six classes of mortgage-backed notes from FIGRE Trust 2024-SL1 (FIGRE 2024-SL1), a $220.1 million RMBS transaction, sponsored by Figure Lending LLC (Figure), comprising first lien (11.4%), second lien (84.6%), and third lien (4.0%) home equity lines of credit (HELOCs) loans. The underlying pool is seasoned twenty-eight months and consists of 4,504 draws on 2,846 lines of credit (the loans) originated by Figure. All the loans in the pool are fixed rate and fully amortizing.
The HELOCs feature maturity terms of 30-years (63.3%), 15-years (20.8%), 10-years (14.2%), and 5-years (1.7%) with corresponding draw periods of 5-years, 4-years, 3-years, and 2-years, respectively. Borrowers have drawn $220.1 million from the combined available credit limit of $241.2 million (a 92.8% current WA draw percentage, also referred to as the utilization rate) as of the cut-off date. Unless specified otherwise, all mortgage loans’ percentages and values presented in this report are based on actual collateral balances from the 2,846 lines of credit as of the cut-off date.
The FIGRE 2024-SL1 deal structure incorporates excess spread along with a sequential interest waterfall and pro-rata/sequential-pay hybrid principal payment waterfall. Losses will be allocated reverse sequentially beginning with the Class B-3 Notes through to the Class A-1 Notes. The deal structure also includes a Reserve Account, to fund borrower draw requests, that is both fully funded and can be replenished, to the target amounts, through the waterfall.
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Related Publications
Methodologies
- RMBS: U.S. RMBS Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
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Information on the meaning of each rating category can be located here.
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Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.
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