Morningstar DBRS Finalizes Provisional Credit Ratings on GSMBS 2025-RPL3

DBRS, Inc. (Morningstar DBRS) finalized its provisional credit ratings to the Mortgage-Backed Securities, Series 2025-RPL3 (the Notes) on the GS Mortgage-Backed Securities Trust 2025-RPL3 (the Trust) as follows:

-- $328.5 million Class A-1 at AAA (sf)
-- $22.8 million Class A-2 at AA (high) (sf)
-- $351.3 million Class A-3 at AA (high) (sf)
-- $374.1 million Class A-4 at A (high) (sf)
-- $392.2 million Class A-5 at BBB (high) (sf)
-- $22.8 million Class M-1 at A (high) (sf)
-- $18.2 million Class M-2 at BBB (high) (sf)
-- $11.7 million Class B-1 at BB (high) (sf)
-- $8.2 million Class B-2 at B (high) (sf)

The Class A-3, A-4, and A-5 Notes are exchangeable. These classes can be exchanged for combinations of initial exchangeable notes as specified in the offering documents.

The AAA (sf) credit rating on the Notes reflects 25.80% of credit enhancement provided by subordinated notes. The AA (high) (sf), A (high) (sf), BBB (high) (sf), BB (high) (sf), and B (high) (sf) credit ratings reflect 20.65%, 15.50%, 11.40%, 8.75%, and 6.90% of credit enhancement, respectively.

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

This Trust is a securitization of a portfolio of seasoned performing and reperforming, first-lien residential mortgages funded by the issuance of the Notes. The Notes are backed by 2,670 loans with a total principal balance of $465,997,284 as of the Cut-Off Date (May 31, 2025).

The portfolio is approximately 219 months seasoned and contains 88.0% modified loans. The modifications happened more than two years ago for 98.6% of the modified loans. Within the pool, 1,499 mortgages have noninterest-bearing deferred amounts, which equate to approximately 63.4% of the total principal balance. There are no Government-Sponsored Enterprise Home Affordable Modification Program and proprietary principal forgiveness amounts included in the deferred amounts.

As of the Cut-Off Date, 84.0% of the loans in the pool are current. Approximately 0.5% of the loans are in bankruptcy (all bankruptcy loans are performing) and 15.5% is 30 days delinquent. Approximately 47.7% of the mortgage loans have been zero times 30 days delinquent (0x30) for at least the past 24 months under the Mortgage Bankers Association (MBA) delinquency method and 59.7% have been 0x30 for at least the past 12 months under the MBA delinquency method.

Approximately 96.6% of the pool is exempt from the Consumer Financial Protection Bureau (CFPB) Ability-to-Repay (ATR)/Qualified Mortgage (QM) rules because the loans were originated as investor property loans or were originated prior to January 10, 2014, the date on which the rules became applicable. The loans subject to the ATR rules are designated as non-QM (3.4%).

The CFPB issued a final rule (the QM Rule), effective with respect to mortgage loans for which the origination process commenced on or after January 10, 2014 (the QM Rule Effective Date), that specifies the characteristics of a qualified mortgage for this purpose.

The Mortgage Loan Sellers, Goldman Sachs Mortgage Company (GSMC) and MCLP Asset Company, Inc. acquired the mortgage loans in various transactions prior to the Closing Date from various mortgage loan sellers or from an affiliate. GS Mortgage Securities Corp. (the Depositor) will contribute the loans to the Trust. These loans were originated and previously serviced by various entities through purchases in the secondary market.

The Sponsor, GSMC, or a majority-owned affiliate, will retain an eligible vertical interest in the transaction consisting of an uncertificated interest (the 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 Notes (other than the Class R Notes) and the Retained Interest to satisfy the credit risk retention requirements under Section 15G of the Securities Exchange Act of 1934 and the regulations promulgated thereunder.

All mortgage loans will be serviced by Nationstar Mortgage LLC (doing business as (dba) Rushmore Servicing). All of the mortgage loans being serviced by interim servicers Select Portfolio Servicing, Inc. and Newrez LLC (dba Shellpoint Mortgage Servicing) will be transferred to Rushmore on July 7, 2025, and July 1, 2025, respectively.

There will not be any advancing of delinquent principal or interest on any mortgages by the related Servicer or any other party to the transaction; however, the related Servicer is obligated to make advances in respect to the preservation, inspection, restoration, protection, and repair of a mortgaged property, which includes delinquent tax and insurance payments, the enforcement of judicial proceedings associated with a mortgage loan, and the management and liquidation of properties (to the extent that the related Servicer deems such advances recoverable).

On or after the Early Repayment Date occurring in June 2027, the Controlling Holder will have the option to purchase all remaining loans and other property of the Issuer at the Redemption Price (Early Redemption Date). The Controlling Holder will be the beneficial owner of more than 50% the Class B-3 Notes (if no longer outstanding, the next most subordinate Class of Notes, other than Class X).

The transaction employs a sequential-pay cash flow structure. Principal proceeds and excess interest can be used to cover interest shortfalls on the Notes, but such shortfalls on the Class A-2 Notes and more subordinate bonds will not be paid from principal proceeds until the more senior classes are retired. Excess interest can be used to amortize the principal of the Notes after paying transaction parties fees, Net Weighted-Average Coupon shortfalls, and making deposits on to the breach reserve account.

The credit ratings reflect transactional strengths that include the following:
-- Loan-to-value ratios;
-- Seasoning;
-- Satisfactory third-party due-diligence review; and
-- Current loan status.

The transaction also includes the following challenges:
-- Representations and warranties standard;
-- No servicer advances of delinquent principal and interest; and
-- Assignments, endorsements, and missing documents.

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

Morningstar DBRS' credit ratings on the Notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations for each of the rated Notes are the related current interest amount, any interest shortfall amount, and the related class principal balances.

Morningstar DBRS' credit ratings do not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations. For example, in this transaction, Morningstar DBRS' credit ratings on the Class A-1, A-2, M-1, and M-2 Notes do not address the payment of any Cap Carryover Amount shortfall amount based on its position in the cash flow waterfall.

Morningstar DBRS' credit rating on Class A-1, A-2, M-1, and M-2 Notes also addresses the credit risk associated with the increased rate of interest applicable to Class A-1, A-2, M-1, and M-2 Notes if the Notes are not redeemed on the Note Rate Step-Up Date (as defined in and) in accordance with the applicable transaction document(s).

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 (May 16, 2025) https://dbrs.morningstar.com/research/454196.

Notes:
All figures are in U.S. 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.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

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

DBRS, Inc.
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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.

RMBS Insight 1.3: U.S. Residential Mortgage-Backed Securities Model (Version 1.3.29.1)
https://dbrs.morningstar.com/research/445477.

--RMBS Insight 1.3: U.S. Residential Mortgage-Backed Securities Model (Version 1.3.29.1), https://dbrs.morningstar.com/research/445477
-- Interest Rate Stresses for U.S. Structured Finance Transactions (March 27, 2025), https://dbrs.morningstar.com/research/450750
-- 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

A description of how Morningstar DBRS analyses structured finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/417279.

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