NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA assigns preliminary ratings to 6 classes of Mortgage Participation Pass-Through Certificates from J.P. Morgan Mortgage Trust 2025-HE2 (JPMMT 2025-HE2), a $362.7 million RMBS transaction sponsored by JPMorgan Chase Bank, National Association and FOCUS III Advisory, LLC consisting entirely of first and second lien home equity line of credit (HELOC) loans. The underlying pool is seasoned approximately five months and comprised of 4,004 loans, with United Wholesale Mortgage, LLC (68.6%) and Better Mortgage Corporation (16.8%) representing the largest contributing originators. The HELOCs are interest-only (IO) adjustable-rate mortgages (ARMs), with IO terms of mostly ten years (95.9%). Most of the loans feature 20-year Amortization Terms, and HELOC initial draw windows of two (0.9%), three (87.0%), five (10.1%) or ten (2.0%) years. As of the June 30, 2025 cut-off date, the borrowers in the pool have drawn $494.4 million from a combined credit limit of $594.0 million for an aggregate utilization rate of 83.2%. The $362.7 unpaid principal balance represents the participation percentage allocated to JPMMT 2025-HE2 from the $494.4 million total drawn amount as of the cut-off date; participation rate equals 73.4%.
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Related Publications
Methodologies
- RMBS: U.S. RMBS Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
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Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
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Doc ID: 1010606
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