Sign in Subscribe
Financial services

KBRA Assigns Preliminary Ratings to GS Mortgage-Backed Securities Trust 2025-HE1

Strategic Insights

— 2 min read

Goldman Sachs Mortgage Company has sponsored a $282.0 million residential mortgage-backed securities (RMBS) transaction, GS Mortgage-Backed Securities Trust 2025-HE1 (GSMBS 2025-HE1), which consists of first lien and second lien home equity line of credit (HELOC) loans. The underlying pool, comprising 2,904 loans, is seasoned approximately seven months and features loans with interest-only (IO) adjustable-rate mortgages. The HELOCs have initial draw windows of three, five, or ten years, and most loans feature 10-year or 20-year amortization terms after the IO period.

Key Takeaways:

  • KBRA has assigned preliminary ratings to 6 classes of mortgage-backed notes from GSMBS 2025-HE1, a $282.0 million RMBS transaction.
  • The underlying pool consists of 2,904 loans, with United Wholesale Mortgage, LLC (54.5%) as the largest contributing originator.
  • The HELOCs are IO adjustable-rate mortgages with initial draw windows of three (50.9%), five (18.7%), or ten (30.4%) years.
  • Most loans feature 10-year or 20-year amortization terms after the IO period, with IO periods ranging from 3 to 10 years and loan maturity terms ranging from 10 to 30 years.
  • As of the June 30, 2025 cut-off date, the borrowers in the pool have drawn $282.0 million from a combined credit limit of $318.0 million, resulting in an aggregate utilization rate of 88.7%.
  • KBRA's rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM) and examination of the results from third-party loan file due diligence.
  • The transaction's payment structure was analyzed, as well as a review of key transaction parties and an assessment of the transaction's legal structure and documentation.

Statistics:

  • $282.0 million: the size of the RMBS transaction, GSMBS 2025-HE1.
  • 2,904: the number of loans in the underlying pool.
  • 54.5%: United Wholesale Mortgage, LLC's share of the largest contributing originators.
  • 88.7%: the aggregate utilization rate of the borrowers in the pool as of the June 30, 2025 cut-off date.
  • 3, 5, or 10 years: the initial draw windows for the HELOCs.
  • 10 or 20 years: the amortization terms for most loans after the IO period.
  • 3 to 10 years: the range of IO periods for the HELOCs.
  • 10 to 30 years: the range of loan maturity terms for the HELOCs.

Sources:

  • Kroll Bond Rating Agency, LLC
  • Goldman Sachs Mortgage Company
  • RMBS: U.S. RMBS Rating Methodology
  • Structured Finance: Global Structured Finance Counterparty Methodology
  • ESG Global Rating Methodology

Read more