Morningstar DBRS Replaces Homeward Opportunities Fund Trust 2024-RRTL2 Presale Report

On August 6, 2024, DBRS, Inc. (Morningstar DBRS) assigned provisional credit ratings to the Mortgage-Backed Notes, Series 2024-RRTL2 (the Notes) to be issued by Homeward Opportunities Fund Trust 2024-RRTL2 as follows:

-- $206.6 million Class A1 at A (low) (sf)
-- $175.5 million Class A1A at A (low) (sf)
-- $31.1 million Class A1B at A (low) (sf)
-- $17.6 million Class A2 at BBB (low) (sf)
-- $18.2 million Class M1 at BB (low) (sf)
-- $14.2 million Class M2 at B (low) (sf)

The A (low) (sf) credit rating reflects 23.50% of credit enhancement provided by the subordinated notes and overcollateralization. The BBB (low) (sf), BB (low) (sf), and B (low) (sf) credit ratings reflect 17.00%, 10.25%, and 5.00% of credit enhancement, respectively.

Other than the specified classes above, Morningstar DBRS does not rate any other classes in this transaction.

Morningstar DBRS originally published a presale report for this transaction on August 6, 2024, which has been replaced to reflect the following: Subsequent to publication, the Sponsor, Homeward Opportunities Fund LP, updated the eligibility criteria to change the maximum concentration of multifamily 5+ loans to 0.0% from 5.0%, which resulted in lower expected losses on the collateral, as described in the related report. Because of this update, the multifamily 5+ loans were removed from the initial mortgage loan population. In addition, the Initial Cut-Off Date moved to July 31, 2024, the initial mortgage loan balances were consequently updated, and more funds were added to the Accumulation Account to maintain the same amount of total collateral. The Note balances and the transaction’s capital structure remain the same as what was described in the prior publication.

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

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

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