Donna M. Mitchell

Redwood Trust's subsidiary, Aspire Sponsor, is in another non-prime residential mortgage-backed securities (RMBS) deal, this time raising $468.8 million.

The deal offers a series of exchangeable, class A and B notes, which will pay coupons ranging from 6.00% on the A1 tranche to 5.00% on the A33 tranche.

Navient will follow a sequential repayment structure, and no subordinate classes will receive any principal until the most senior outstanding class is paid in full.

The investment will be sourced primarily from KKR's infrastructure and asset-based finance strategies, according to a statement from the company.

All the loans are interest-only during both their initial and extension terms, but third-party secured overnight financing rate (SOFR) cap agreements provide interest rate protection.

The A1A through A1-LCF tranches are expected to offer coupons of 5.84%, while mezzanine and subordinate coupons include 6.58% and 6.64%.

The industry association said total multifamily mortgage debt alone increased by $23 billion, or 1% in Q1, representing a $2.32 trillion increase from Q4 2025, the MBA said.

The industry association said total multifamily mortgage debt alone increased by $23 billion, or 1% in Q1, representing a $2.32 trillion increase from Q4 2025.

A cash trap account captures excess available funds if the senior debt service coverage ratio (DSCR) is less than or equal to 1.35x.

The A-1-V notes are not expected to be drawn at close and will have to observe certain leverage and debt service coverage ratio (DSCR) conditions.