The PMT Loan Trust 2026-INV5 is coming to market to sell $415.7 million in securitized bonds, backed by payments from a pool of 1,095 fixed-rate mortgages, according to Kroll Bond Rating Agency.
The deal will sell notes through class A and B notes that will repay investors sequentially, KBRA said. Investment properties collateralize most of the mortgages, 75.4%, the rating agency said, while second homes account for the other 24.6%.
The notes are expected to pay coupons including 5.00% on the A6 through A30 tranches of notes, and 6.13% on the B1 through B6 notes, KBRA said.
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Nomura Securities International, ATLAS SP Securities,
KBRA’s ratings assignments include AAA on the A-6 notes, AA+ on the A30 tranche, BBB on the B3 notes, BB+ on the B4 tranche and B+ on the B5 tranche.
The entire pool is composed of first-lien mortgages and was originated using agency underwriting standards, KBRA said. The loans have an average balance of $379,711, and a weighted average (WA) coupon on 6.41%.
PMT 2026-INV5’s underlying borrowers have a WA original FICO score of 778, and moderate leverage at 73.6%. Also on a WA basis, borrowers have a debt-to-income ratio of 35.9%.
Also, borrowers have an annual income of $323.975 on a non-zero WA basis and have liquid reserves of $401,915, KBRA said.
Among the deal’s structural credit enhancements is a 120-day stop-advance feature. The applicable servicer or fiscal agent will not be required to forward scheduled interest and principal on loans that are delinquent by 120 days or more, KBRA said.