Moody’s Investors Service, (“Moody’s”) has assigned provisional ratings to 55 classes of residential mortgage-backed securities (RMBS) issued by J.P. Morgan Mortgage Trust (JPMMT) 2020-4. The ratings range from (P)Aaa (sf) to (P)B3 (sf).
The certificates are backed by 763 fully-amortizing fixed-rate mortgage loans with a total balance of $534,399,556. as of the June 1, 2020 cut-off date. The loans have original terms to maturity of up to 30 years. Similar to prior JPMMT transactions, JPMMT 2020-4 includes agency-eligible mortgage loans (approximately 48.3% by loan balance) underwritten to the government sponsored enterprises (GSE) guidelines, in addition to prime jumbo non-agency eligible mortgages purchased by J.P. Morgan Mortgage Acquisition Corp. (JPMMAC), the sponsor and mortgage loan seller, from various originators. United Shore Financial Services, LLC d/b/a United Wholesale Mortgage and Shore Mortgage (United Shore), Quicken Loans, LLC (Quicken Loans), and loanDepot.com, LLC (loanDepot) originated approximately 48.0%, 23.0%, and 15.8% of the mortgage loans (by balance) in the pool, respectively. All other originators accounted for less than 10% of the pool by balance. With respect to the mortgage loans, each originator made a representation and warranty that the mortgage loan constitutes a qualified mortgage (QM) under the qualified mortgage rule.
United Shore will service about 48.0% of the mortgage loans(subserviced by Cenlar, FSB), Quicken Loans will service about 23.0% of the mortgage loans, loanDepot will service about 15.8% (subserviced by Cenlar, FSB), and remaining servicers each account for less than 10% of the aggregate principal balance. The servicing fee for loans serviced by loanDepot and United Shore will be based on a step-up incentive fee structure with additional fees for servicing delinquent and defaulted loans. Quicken Loans, AmeriHome Mortgage Company LLC (Amerihome) and USAA Federal Savings Bank (USAA FSB) have a fixed fee servicing framework. Nationstar Mortgage LLC (Nationstar) will be the master servicer and Citibank, N.A. (Citibank) will be the securities administrator and Delaware trustee. Pentalpha Surveillance LLC will be the representations and warranties breach reviewer. Distributions of principal and interest and loss allocations are based on a typical shifting interest structure that benefits from senior and subordination floors.
