DBRS Assigns Ratings to Various Towd Point Mortgage Trust Transactions

DBRS, Inc. (DBRS) has assigned the following ratings to the Asset Backed Securities (the Notes) from eight previously issued Towd Point Mortgage Trust (TPMT) transactions as follows:

TPMT 2015-2:
-- $43.3 million Class 1-A2 at AA (high) (sf)
-- $35.8 million Class 1-M1 at AA (low) (sf)
-- $51.1 million Class 1-M2 at BBB (sf)
-- $36.5 million Class 1-B1 at BB (high) (sf)
-- $41.1 million Class 1-B2 at B (high) (sf)
-- $305.7 million Class 1-A2E at AA (high) (sf)
-- $305.7 million Class 1-A2E1 at AA (high) (sf)
-- $305.7 million Class 1-A2E1X at AA (high) (sf)
-- $305.7 million Class 1-A2E2 at AA (high) (sf)
-- $305.7 million Class 1-A2E2X at AA (high) (sf)
-- $305.7 million Class 1-A2E3 at AA (high) (sf)
-- $305.7 million Class 1-A2E3X at AA (high) (sf)
-- $11.8 million Class 2-M1 at AA (sf)
-- $11.0 million Class 2-M2 at A (sf)
-- $9.5 million Class 2-B1 at BBB (sf)
-- $7.3 million Class 2-B2 at BB (sf)

TPMT 2015-3:
-- $59.8 million Class A2 at AA (sf)
-- $45.6 million Class M1 at A (high) (sf)
-- $43.6 million Class M2 at BBB (sf)
-- $35.0 million Class B1 at BB (sf)
-- $28.1 million Class B2 at B (sf)
-- $386.5 million Class A3 at AA (sf)
-- $386.5 million Class A3A at AA (sf)
-- $386.5 million Class A3B at AA (sf)
-- $386.5 million Class A3C at AA (sf)
-- $386.5 million Class X4 at AA (sf)
-- $386.5 million Class X5 at AA (sf)
-- $386.5 million Class X6 at AA (sf)
-- $432.1 million Class A4 at A (high) (sf)
-- $432.1 million Class A4A at A (high) (sf)
-- $432.1 million Class A4B at A (high) (sf)
-- $432.1 million Class A4C at A (high) (sf)
-- $432.1 million Class X7 at A (high) (sf)
-- $432.1 million Class X8 at A (high) (sf)
-- $432.1 million Class X9 at A (high) (sf)

TPMT 2015-4:
-- $78.7 million Class M1 at A (high) (sf)
-- $83.3 million Class M2 at BBB (sf)
-- $70.3 million Class B1 at BB (sf)
-- $67.7 million Class B2 at B (sf)
-- $78.7 million Class M1A at A (high) (sf)
-- $78.7 million Class M1X at A (high) (sf)
-- $83.3 million Class M2A at BBB (sf)
-- $83.3 million Class M2X at BBB (sf)
-- $654.0 million Class A4 at A (high) (sf)
-- $654.0 million Class A4A at A (high) (sf)
-- $654.0 million Class A4B at A (high) (sf)
-- $654.0 million Class A4C at A (high) (sf)
-- $654.0 million Class X7 at A (high) (sf)
-- $654.0 million Class X8 at A (high) (sf)
-- $654.0 million Class X9 at A (high) (sf)

TPMT 2015-5:
-- $73.5 million Class M1 at A (sf)
-- $62.8 million Class M2 at BBB (sf)
-- $60.6 million Class B1 at BB (sf)
-- $51.6 million Class B2 at B (sf)
-- $581.4 million Class A4 at A (sf)
-- $581.4 million Class A4A at A (sf)
-- $581.4 million Class A4B at A (sf)
-- $581.4 million Class A4C at A (sf)
-- $581.4 million Class X7 at A (sf)
-- $581.4 million Class X8 at A (sf)
-- $581.4 million Class X9 at A (sf)

TPMT 2015-6:
-- $54.2 million Class M1 at A (sf)
-- $48.9 million Class M2 at BBB (sf)
-- $42.6 million Class B1 at BB (sf)
-- $37.8 million Class B2 at B (sf)
-- $54.2 million Class M1A at A (sf)
-- $48.9 million Class M2A at BBB (sf)
-- $54.2 million Class M1X at A (sf)
-- $48.9 million Class M2X at BBB (sf)
-- $509.2 million Class A4 at A (sf)
-- $509.2 million Class A4A at A (sf)
-- $509.2 million Class A4B at A (sf)
-- $509.2 million Class A4C at A (sf)
-- $509.2 million Class X7 at A (sf)
-- $509.2 million Class X8 at A (sf)
-- $509.2 million Class X9 at A (sf)

TPMT 2016-1:
-- $37.1 million Class M1 at A (sf)
-- $32.1 million Class M2 at BBB (sf)
-- $29.4 million Class B1 at BB (sf)
-- $20.9 million Class B2 at B (high) (sf)
-- $474.2 million Class A4 at A (sf)
-- $474.2 million Class A4A at A (sf)
-- $474.2 million Class A4B at A (sf)
-- $474.2 million Class A4C at A (sf)
-- $474.2 million Class X7 at A (sf)
-- $474.2 million Class X8 at A (sf)
-- $474.2 million Class X9 at A (sf)
-- $506.3 million Class A5 at BBB (sf)

TPMT 2016-3:
-- $48.7 million Class B1 at BB (sf)
-- $32.2 million Class B2 at B (sf)

TPMT 2016-4:
-- $42.2 million Class A2 at AA (sf)
-- $40.9 million Class M1 at A (sf)
-- $27.3 million Class M2 at BBB (sf)
-- $31.8 million Class B1 at BB (high) (sf)
-- $19.5 million Class B2 at BB (low) (sf)
-- $18.2 million Class B3 at B (sf)

DBRS has previously assigned ratings to certain other classes in the above transactions.

These transactions are backed by pools of seasoned performing and re-performing first-lien residential mortgages.

The ratings reflect transactional strengths that include well-performing underlying assets, strong servicers and asset manager oversight. Additionally, satisfactory third-party due diligence reviews were performed with respect to regulatory compliance, payment history and data capture, as well as title and tax review. Servicing comments were reviewed for a sample of loans.

For these transactions there will not be any advancing of delinquent principal or interest on any mortgages by the servicer or any other party to the transaction; however, the servicer is obligated to make advances in respect of taxes and insurance, reasonable costs and expenses incurred in the course of servicing and disposing of properties.

The transactions generally employ a sequential-pay cash flow structure. Principal proceeds can be used to cover interest shortfalls on the Notes, but shortfalls on the subordinate bonds will not be paid until the more senior classes are retired.

The transactions employ relatively weak representations and warranties framework that includes a 13-month sunset, an unrated representation provider with a backstop by an unrated entity, certain knowledge qualifiers and fewer mortgage loan representations relative to DBRS criteria for seasoned pools. Mitigating factors include (1) significant loan seasoning and relative clean performance history in recent years, (2) a comprehensive due diligence review and (3) a strong representations and warranties enforcement mechanism, including a delinquency review trigger and breach reserve accounts.

The DBRS ratings of the Notes from TPMT 2015-2, TPMT 2015-3, TPMT 2015-4, TPMT 2015-5, TPMT 2015-6 and TPMT 2016-1 address the timely payment of interest and full payment of principal by the legal final maturity date in accordance with the terms and conditions of the related Notes. The DBRS ratings of the Notes from TPMT 2016-3 address the ultimate payment of interest and full payment of principal by the legal final maturity date in accordance with the terms and conditions of the related Notes.

For the TPMT 2016-4 transaction, the DBRS ratings of AA (sf) address the timely payment of interest and full payment of principal by the legal final maturity date in accordance with the terms and conditions of the related Notes. Additionally, for this transaction the DBRS ratings of A (sf), BBB (sf), BB (high) (sf), BB (low) (sf) and B (sf) address the ultimate payment of interest and full payment of principal by the legal final maturity date in accordance with the terms and conditions of the related Notes.

The ratings assigned to Class B1 and Class B2 for the TPMT 2016-3 transaction differ from the ratings implied by the quantitative model. DBRS considers this difference to be a material deviation, but in this case, the assigned ratings reflect the low seasoning and lack of historical performance of the TPMT 2016-3 transaction.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are RMBS Insight 1.2: U.S. Residential Mortgage-Backed Securities Model and Rating Methodology, Unified Interest Rate Model for Rating U.S. Structured Finance Transactions, Third-Party Due Diligence Criteria for U.S. RMBS Transactions, Representations and Warranties Criteria for U.S. RMBS Transactions, Legal Criteria for U.S. Structured Finance, Operational Risk Assessment for U.S. RMBS Originators and Operational Risk Assessment for U.S. RMBS Servicers, which can be found on our website under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.