DBRS Assigns Ratings to Various Towd Point Mortgage Trust Transactions

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

TPMT 2016-5
-- $14.7 million Class B3 at B (sf)

TPMT 2017-2
-- $29.9 million Class B3 at BB (low) (sf)

TPMT 2017-3
-- $24.8 million Class B3 at BB (low) (sf)

TPMT 2018-1
-- $34.9 million Class M2 at BBB (high) (sf)
-- $21.0 million Class B1 at BB (high) (sf)
-- $24.5 million Class B2 at B (high) (sf)
-- $24.5 million Class B3 at B (sf)

TPMT 2018-4
-- $50.1 million Class A2 at AA (sf)
-- $34.7 million Class M1 at A (sf)
-- $30.8 million Class M2 at BBB (high) (sf)
-- $20.8 million Class B1 at BBB (low) (sf)
-- $17.0 million Class B2 at BB (low) (sf)
-- $559.3 million Class A3 at AA (sf)
-- $594.0 million Class A4 at A (sf)

TPMT 2018-5
-- $41.9 million Class M1 at A (sf)
-- $32.7 million Class M2 at BBB (sf)
-- $26.0 million Class B1 at BB (sf)
-- $18.4 million Class B2 at B (high) (sf)
-- $623.8 million Class A4 at A (sf)

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

The 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.

DBRS’s ratings in the highest and second-highest rating categories 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. For all other ratings, DBRS’s ratings 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 the classes specified above are initiated by DBRS as part of the recently announced analytical integration for certain overlapping U.S residential mortgage-backed security asset classes (<a href="https://www.dbrs.com/research/349912/” target="_blank"> "DBRS and Morningstar Credit Ratings Confirm U.S. RMBS Asset Class Coverage."</a>) As part of the analytical integration process, the corresponding Morningstar Credit Ratings, LLC ratings that were placed Under Review – Analytical Integration will be discontinued and withdrawn. As such, the ratings specified above are deemed to be solicited DBRS ratings.

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

The principal methodology is RMBS Insight 1.3: U.S. Residential Mortgage-Backed Securities Model and Rating Methodology, which can be found on dbrs.com under Methodologies & Criteria.

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

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA