S&P: Green Tree Agency Advance Funding Trust I $300 Million Notes Series 2016-T1 Assigned Preliminary Ratings
The note issuance is a servicer advance transaction backed by servicer advance reimbursements.
The preliminary ratings are based on information as of Sept. 26, 2016. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings.
The preliminary ratings reflect:The strong likelihood of the servicer advance receivables' reimbursement given their reimbursement features; The transaction's revolving period, during which collections or draws on the variable-funding notes may be used to fund additional advance receivables, and the specified eligibility requirements, collateral value exclusions, credit enhancement test (the collateral test), and amortization triggers intended to maintain pool quality and credit enhancement during this period;The transaction's use of pre-determined, rating category-specific advance rates for each receivable type in the pool that discount the receivables, which are non-interest bearing, to satisfy the interest obligations on the notes, as well as provide for dynamic overcollateralization;The projected timing of the servicer advance receivables' reimbursements, which, in the 'AAA', 'AA', and 'A' scenarios, reflects our assumption that the servicer would be replaced, while in a 'BBB' scenario, reflects the servicer's historical reimbursement experience; The credit enhancement in the form of overcollateralization, subordination, and the series reserve accounts;The timely interest and full principal payments made under our stressed cash flow modeling scenarios consistent with the assigned ratings; andThe transaction's sequential turbo payment structure that applies during any full amortization period.