Morningstar DBRS Finalizes Its Provisional Credit Ratings on J.P. Morgan Mortgage Trust 2025-1

DBRS, Inc. (Morningstar DBRS) finalized its provisional credit ratings on the Mortgage Pass-Through Certificates, Series 2025-1 (the Certificates) issued by the J.P. Morgan Mortgage Trust 2025-1 (JPMMT 2025-1):

-- $458.5 million Class A-1 at AAA (sf)
-- $372.1 million Class A-2 at AAA (sf)
-- $372.1 million Class A-3 at AAA (sf)
-- $372.1 million Class A-3-X at AAA (sf)
-- $279.1 million Class A-4 at AAA (sf)
-- $279.1 million Class A-4-A at AAA (sf)
-- $279.1 million Class A-4-X at AAA (sf)
-- $93.0 million Class A-5 at AAA (sf)
-- $93.0 million Class A-5-A at AAA (sf)
-- $93.0 million Class A-5-X at AAA (sf)
-- $223.3 million Class A-6 at AAA (sf)
-- $223.3 million Class A-6-A at AAA (sf)
-- $223.3 million Class A-6-X at AAA (sf)
-- $148.8 million Class A-7 at AAA (sf)
-- $148.8 million Class A-7-A at AAA (sf)
-- $148.8 million Class A-7-X at AAA (sf)
-- $55.8 million Class A-8 at AAA (sf)
-- $55.8 million Class A-8-A at AAA (sf)
-- $55.8 million Class A-8-X at AAA (sf)
-- $45.0 million Class A-9 at AAA (sf)
-- $45.0 million Class A-9-A at AAA (sf)
-- $45.0 million Class A-9-X at AAA (sf)
-- $41.3 million Class A-11 at AAA (sf)
-- $41.3 million Class A-11-X at AAA (sf)
-- $41.3 million Class A-12 at AAA (sf)
-- $41.3 million Class A-13 at AAA (sf)
-- $41.3 million Class A-13-X at AAA (sf)
-- $41.3 million Class A-14 at AAA (sf)
-- $41.3 million Class A-14-X at AAA (sf)
-- $41.3 million Class A-14-X2 at AAA (sf)
-- $41.3 million Class A-14-X3 at AAA (sf)
-- $41.3 million Class A-14-X4 at AAA (sf)
-- $458.5 million Class A-X-1 at AAA (sf)
-- $9.2 million Class B-1 at AA (low) (sf)
-- $9.2 million Class B-1-A at AA (low) (sf)
-- $9.2 million Class B-1-X at AA (low) (sf)
-- $8.5 million Class B-2 at A (low) (sf)
-- $8.5 million Class B-2-A at A (low) (sf)
-- $8.5 million Class B-2-X at A (low) (sf)
-- $4.9 million Class B-3 at BBB (low) (sf)
-- $2.4 million Class B-4 at BB (low) (sf)
-- $972.8 thousand Class B-5 at B (low) (sf)

Classes A-3-X, A-4-X, A-5-X, A-6-X, A-7-X, A-8-X, A-9-X, A-11-X, A-13-X, A-14-X, A-14-X2, A-14-X3, A-14-X4, A-X-1, B-1-X, and B-2-X are interest-only (IO) certificates. The class balances represent notional amounts.

Classes A-1. A-2, A-3, A-3-X, A-4, A-4-A, A-4-X, A-5, A-6, A-7, A-7-A, A-7-X, A-8, A-9, A-11, A-11-X, A-12, A-13, A-13-X, B-1, and B-2 are exchangeable certificates. These classes can be exchanged for combinations of depositable certificates as specified in the offering documents.

Classes A-2, A-3, A-4, A-4-A, A-5, A-5-A, A-6, A-6-A, A-7, A-7-A, A-8, A-8-A, A-11, A-12, A-13, and A-14 are super senior certificates. These classes benefit from additional protection from the senior support certificate (Class A-9-A) with respect to loss allocation.

The AAA (sf) credit ratings on the Certificates reflect 5.75% of credit enhancement provided by subordinated certificates. The AA (low) (sf), A (low) (sf), BBB (low) (sf), BB (low) (sf), and B (low) (sf) credit ratings reflect 3.85%, 2.10%, 1.10%, 0.60%, and 0.40% of credit enhancement, respectively.

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

The transaction is a securitization of a portfolio of first-lien fixed-rate prime residential mortgages funded by the issuance of the Mortgage Pass-Through Certificates, Series 2025-1 (the Certificates). The Certificates are backed by 373 loans with a total principal balance of $486,422,052 as of the Cut-Off Date (January 1, 2025).

The pool consists of fully amortizing fixed-rate mortgages with original terms to maturity of 30 years and a weighted-average (WA) loan age of three months. Approximately 94.5% of the loans are traditional, nonagency, prime jumbo mortgage loans. The remaining 5.5% of the loans are conforming mortgage loans that were underwritten using an automated underwriting system (AUS) designated by Fannie Mae or Freddie Mac and were eligible for purchase by such agencies. Details on the underwriting of conforming loans can be found in the Key Probability of Default Drivers section. In addition, all of the loans in the pool were originated in accordance with the new general Qualified Mortgage (QM) rule.

United Wholesale Mortgage, LLC (UWM) originated 37.0% of the pool. Various other originators, each comprising less than 10%, originated the remainder of the loans. The mortgage loans will be serviced by Shellpoint (59.9%), UWM (37.0%) and Fay Servicing (3.1%). For the UWM serviced loans, Cenlar will act as the subservicer. For the JPMorgan Chase Bank, N.A. (JPMCB)-serviced loans, Shellpoint will act as interim servicer until the loans transfer to JPMCB on the servicing transfer date (March 1, 2025).

For certain Servicers in this transaction, the servicing fee payable for mortgage loans is composed of three separate components: the base servicing fee, the delinquent servicing fee, and the additional servicing fee. These fees vary based on the delinquency status of the related loan and will be paid from interest collections before distribution to the securities.

Nationstar Mortgage LLC (Nationstar) will act as the Master Servicer. Citibank, N.A. (Citibank; rated AA (low) with a Stable trend by Morningstar DBRS) will act as Securities Administrator and Delaware Trustee. Computershare Trust Company, N.A. (Computershare) will act as Custodian. Pentalpha Surveillance LLC (Pentalpha) will serve as the Representations and Warranties (R&W) Reviewer.

As of the Closing Date, C.U.P Holdings LLC, or one of its affiliates, will retain an eligible vertical interest in the transaction consisting of an uncertificated interest (the EU/UK Retained Interest) in the Trust representing the right to receive at least 5.0% of the amounts collected on the mortgage loans, net of the Trust's fees, expenses, and reimbursements and paid on the Certificates (other than the Class X and Class A-R Certificates) and the Retained Interest to satisfy the credit risk retention requirements in Articles 6(3) of the EU Securitization Regulation and 6(3) of the UK Securitization Regulation.

The transaction employs a senior-subordinate, shifting-interest cash flow structure that incorporates performance triggers and credit enhancement floors.
The credit ratings reflect transactional strengths that include the following:
-- High-quality credit attributes.
-- Well-qualified borrowers.
-- Satisfactory third-party due-diligence review.
-- Structural enhancements.
-- 100% current loans.

The transaction also includes the following challenges:
-- Servicers' financial capabilities.

The full description of the strengths, challenges, and mitigating factors is detailed in the related report.

Morningstar DBRS' credit rating on the Certificates addresses the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations are the related Interest Distribution Amounts, the related Interest Shortfalls, and the related Class Principal Amounts (for non-IO Certificates).

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) https://dbrs.morningstar.com/research/437781.

Notes:
All figures are in US dollars unless otherwise noted.

The principal methodology applicable to the credit ratings is

RMBS Insight 1.3: U.S. Residential Mortgage-Backed Securities Model and Rating Methodology (January 02, 2025) https://dbrs.morningstar.com/research/445477.

Other methodologies referenced in this transaction are listed at the end of this press release.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

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

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA
Tel. +1 212 806-3277

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- Interest Rate Stresses for U.S. Structured Finance Transactions (February 26, 2024),
https://dbrs.morningstar.com/research/428623
-- Third-Party Due-Diligence and Representations & Warranties Criteria for U.S. RMBS Transactions (September 30, 2024),
https://dbrs.morningstar.com/research/440091
-- Legal Criteria for U.S. Structured Finance (December 3, 2024),
https://dbrs.morningstar.com/research/444064
-- Operational Risk Assessment for U.S. RMBS Originators and Servicers (September 30, 2024),
https://dbrs.morningstar.com/research/440086

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