Kroll Bond Rating Agency Assigns Preliminary Ratings to J.P. Morgan Mortgage Trust 2013-1 Certificates

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to eight classes of mortgage pass-through certificates from J.P. Morgan Mortgage Trust 2013-1, a jumbo prime RMBS transaction.

The mortgage pool backing J.P. Morgan Mortgage Trust 2013-1 is comprised of 752 first-lien mortgage loans with an aggregate principal balance of $616,260,381 as of the cut-off date. The pool is divided into two sub-pools, one consisting almost entirely of 30-year fixed-rate mortgages, the other consisting of a mix of 30-year ARMs with a 10-year fixed period and 15-year fixed-rate mortgages. The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the weighted average LTV (63%) and CLTV (65%). The weighted average credit score of the mortgage pool is 769 which is well within the “prime” mortgage range.

KBRA’s analysis of the transaction includes a loan-level analysis of the mortgage pool using our Residential Mortgage Default and Loss Model, together with a review of the transaction parties, results of loan file reviews performed by independent third party firms and a pre-closing review of the legal structure and key documentation. This analysis is further described in our U.S. RMBS Rating Methodology.

For complete details on the analysis, please see our Pre-Sale Report, J.P. Morgan Mortgage Trust 2013-1 which was published today at www.krollbondratings.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: J.P. Morgan Mortgage Trust 2013-1
Class	Rating	Expected Initial Class Principal
1-A1	AAA(sf)	244,401,000
1-A-IO	AAA(sf)	244,401,000
2-A1	AAA(sf)	326,256,000
2-A-IO	AAA(sf)	326,256,000
B-1	AA(sf)	15,406,000
B-2	A(sf)	9,244,000
B-3	BBB(sf)	7,703,000
B-4	BB(sf)	5,238,000
B-5	NR	8,012,381
* Notional Balance

17g-7 Disclosure:

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report: J.P. Morgan Mortgage Trust 2003-1 17g-7 Disclosure report.

Related publications:

U.S. RMBS Rating Methodology, published January 9, 2012

Residential Mortgage Default and Loss Model, published January 9, 2012

About Kroll Bond Rating Agency

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).