KBRA Assigns Preliminary Ratings to Lakeview Trust 2022-EBO3 (BVEBO 2022-3)

BY Business Wire | AGENCY | 05/26/22 10:04 AM EDT

NEW YORK--(BUSINESS WIRE)-- KBRA assigns preliminary ratings to 6 classes of notes from Lakeview Trust 2022-EBO3 (BVEBO 2022-3), collateralized by FHA-insured Ginnie Mae early buyout (EBOs) loans. As of the March 31, 2022 cut-off date, the subject pool is comprised of 1,713 loans totaling approximately $303.0 million. At certain times in the past, all of the underlying loans were pooled in GNMA MBS but have since been repurchased (or ?bought out?) from those MBS at a time when the loans had become seriously delinquent.

KBRA analyzed the underlying mortgage pool using the U.S. Ginnie Mae Early Buyout Rating Methodology. The analysis incorporates quantitative and qualitative analysis of servicing procedures and historical performance in projecting recovery amounts through the reperformance, non-conveyance, and conveyance paths, along with assuming a percentage of non-conveyable (uninsurable) amounts.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

  • U.S. Ginnie Mae Early Buyout Rating Methodology
  • Global Structured Finance Counterparty Methodology
  • ESG Global Rating Methodology


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.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

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 pursuant to the Temporary Registration Regime. 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.

Source: KBRA

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.