A pool of 243 residential mortgages will secure $311.2 million in mortgage-backed securities from the GS Mortgage-Backed Securities Trust, series 2025-PJ7.
All the underlying loans in the pool, which includes agency and non-agency eligible loans, are 30-year, fixed-rate mortgages, according to analysts at Kroll Bond Rating Agency. They are prime, jumbo loans with an average balance of $1.2 million, KBRA said.
The deal, slated to close on July 31, will issue notes through an extensive structure of class A and B notes.
Most of GSMBS 2025-PJ7's notes are interest only, and will repay investors on a senior-subordinate, shifting interest sequence, according to KBRA. The deal structure also preserves cashflow, and enhances credit, partially through delinquency and cumulative-loss triggers.
In terms of subordination, GSMBS 2025-PJ7 will distribute scheduled principal on a pro rata basis. Meanwhile, the subordinate classes will be shut out from receiving any unscheduled principal payments during a lockout period, KBRA said. After the lockout period, the subordinate notes can begin receiving unscheduled principal, after senior notes, on a pro rata basis, KBRA said.
Credit enhancement ranges from 15.0% on the AAA-rated A9 notes through 0.25% on the class B5 notes, rated B-.
Shellpoint Mortgage Servicing and PennyMac Loan Services. On a weighted average (WA) basis, borrowers on the underlying loans have a FICO score of 776, and an original loan-to-value ratio of 70.6%. On a non-zero, WA basis, they also have annual income of $583,902 and WA liquid reserves of $698,171.
KBRA also notes that 88.0% of the mortgages in the collateral pool were originated through full documentation, and the remaining 12% was done through agency underwriting.
KBRA assigns AAA to the A9 through A22 notes; AA- to the B1 and B1A notes; A- to the B2 and B2A notes; BBB- to the B3 notes; BB- to the B4 notes; and B- to the B5 notes.
