KBRA Assigns Preliminary Ratings to GS Mortgage-Backed Securities Trust 2025-HE1 (GSMBS 2025-HE1)
18 Jul 2025 | New York
KBRA assigns preliminary ratings to 6 classes of mortgage-backed notes from GS Mortgage-Backed Securities Trust 2025-HE1 (GSMBS 2025-HE1), a $282.0 million RMBS transaction sponsored by Goldman Sachs Mortgage Company. GSMBS 2025-HE1 consists of first lien (7.1%) and second lien (92.9%) home equity line of credit (HELOC) loans. The underlying pool is seasoned approximately seven months and comprises 2,904 loans, with United Wholesale Mortgage, LLC (54.5%) as the largest contributing originator. The HELOCs are interest-only (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. IO periods range from 3 to 10 years and loan maturity terms range 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 for 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), an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.
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