Foundation Finance Trust 2025-2 (FFIN 2025-2) has issued 5 lessons of notes totaling $329.23 million, collateralized by $332.55 million receivables.
The RMBS notes are backed by residence enchancment installment loans originated by accredited sellers in Foundation Finance Company’s community of 13,240 sellers positioned in many of the 50 states. The sellers present point-of-sale financing for residence enchancment services and products reminiscent of water remedy merchandise, water heaters, residence enhancements, HVAC, and roof replacements.
Foundation Finance Company acts because the loans’ servicer. BNP Paribas, Goldman Sachs and Guggenheim Securities are the managers, and Wilmington Trust Company is the trustee and backup servicer.
Foundation was based in 2012 by an skilled administration staff and Garrison Investment Group, KBRA mentioned. In September 2022, Foundation was acquired by InterVest Capital Partners, a New York-based funding administration agency which manages funds and accounts specializing in specialty finance and actual property funding. InterVest owns 76.50% of the enterprise and the stability is owned by Foundation’s administration staff.
KBRA mentioned that, as of the May 31, 2025 statistical cutoff date, the FFIN 2025-2 collateral pool had a weighted-average FICO rating of 736; a WA unique and remaining cost phrases of 135 and 133 months, respectively; a median excellent stability of $19,993; and a WA contract fee of 12.56%.
As of the statistical cutoff date, FFIN 2025-2’s largest geographic focus is in Texas at 16.6% of the excellent principal stability, KBRA mentioned. The subsequent largest state concentrations are California (8.3%), Florida (6.9%), Illinois (5.2%), and Ohio (4.1%). The high 5 states characterize 41.1% of the excellent principal stability as of the statistical cutoff date.
Moody’s Ratings mentioned that its median cumulative gross and web loss expectation for the 2025-2 pool are 14% (2.5% decrease than Foundation Finance Trust’s earlier transaction FFIN 2025-1) and 9.8%, respectively. It based mostly its cumulative gross and web loss expectations on an evaluation of the underlying collateral’s credit score high quality; Foundation’s potential to carry out the servicing features and Wilmington Trust’s potential to carry out the backup servicing features; and present expectations for the macroeconomic atmosphere in the course of the transaction’s life.
At closing, the Class A notes profit from 34.6% of arduous credit score enhancement, Moody’s mentioned. Hard credit score enhancement for the Class A notes contains a mixture of over-collateralization, a non-declining reserve account and subordination. The notes additionally profit from extra unfold.
Moody’s assigned a definitive AAA score to the Class A notes price $291.15 million however did not fee the opposite notes.
KBRA assigned AAA to the Class A notes, AA- to the Class B notes ($43.23 million and preliminary credit score enhancement of 21.6%), A- to the Class C notes ($19.62 million and 15.7%), BBB- to the Class D notes ($25.61 million and eight%), and BB- to the Class E notes ($21.62 million and 1.5%).
Neither firm rated the over-collateralization notes price $3.32 million.
