KBRA Affirms All Ratings for BAMLL Re-REMIC Trust 2024-FRR2
17 Apr 2025 | New York
KBRA affirms all of its outstanding ratings for BAMLL Re-REMIC Trust 2024-FRR2, a re-securitization of the FREMF 2017-K65 securitization’s (the underlying trust) Class D (principal-only) and Class X2-A and X2-B (interest only) certificates. FREMF 2017-K65 was issued in conjunction with the Federal Home Loan Mortgage Corporation’s (Freddie Mac) K-Deal program. The affirmations follow a surveillance review of the underlying trust, which has exhibited an improvement in pool performance since re-securitization. However, the magnitude of the changes does not warrant ratings adjustments for the re-securitized certificates at this time. The review was conducted using data from the March 2025 remittance report for the underlying trust, borrower financial statements, rent rolls, and market information provided by REIS.
In the FREMF 2017-K65 underlying trust, as of the March 2025 remittance period, none of the loans are specially serviced or delinquent. Four loans (2.8%) were identified as K-LOCs, none of which are within the Top 10 nor have estimated losses. In addition, 19 loans (30.6% of the K65 pool balance) are fully defeased, including the former ninth-largest loan (3.1%). The WA KLTV is 82.5%, compared to 87.6% at re-securitization. The KDSC is 1.78x, compared to 1.71x at re-securitization. For information on the FREMF 2017-K65 underlying trust, which is KBRA-rated, please refer to the FREMF 2017-K65 February 2025 Surveillance Report .
Rating Sensitivities
Future ratings actions will be dependent upon the ability of the remaining loans to pay off as the loans in the transaction are approaching their maturity in the near term. However, rating changes can occur for a variety of reasons that are not dependent upon maturity defaults and subsequent losses. For example, unforeseen trust expenses that cause recurring interest shortfalls to the securities could prompt negative rating changes.
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