DBRS Morningstar Assigns Additional Ratings to Towd Point Mortgage Trust 2020-3

DBRS, Inc. (DBRS Morningstar) assigned the following ratings to the Asset-Backed Securities, Series 2020-3 (the Notes) issued by Towd Point Mortgage Trust 2020-3 (TPMT 2020-3):

-- $35.7 million Class B1A at BB (sf)
-- $35.7 million Class B1AX at BB (sf)
-- $35.7 million Class B1B at BB (sf)
-- $35.7 million Class B1BX at BB (sf)
-- $35.7 million Class B1C at BB (sf)
-- $35.7 million Class B1CX at BB (sf)
-- $35.7 million Class B1D at BB (sf)
-- $35.7 million Class B1DX at BB (sf)
-- $35.7 million Class B1E at BB (sf)
-- $35.7 million Class B1EX at BB (sf)
-- $25.9 million Class B2A at B (sf)
-- $25.9 million Class B2AX at B (sf)
-- $25.9 million Class B2B at B (sf)
-- $25.9 million Class B2BX at B (sf)
-- $25.9 million Class B2C at B (sf)
-- $25.9 million Class B2CX at B (sf)
-- $25.9 million Class B2D at B (sf)
-- $25.9 million Class B2DX at B (sf)
-- $25.9 million Class B2E at B (sf)
-- $25.9 million Class B2EX at B (sf)

Classes B1AX, B1BX, B1CX, B1DX, B1EX, B2AX, B2BX, B2CX, B2DX, and B2EX are interest-only notes. The class balances represent a notional amount.

All classes listed above are exchangeable notes. These classes can be exchanged for combinations of exchange notes as specified in the offering documents.

The BB (sf) ratings on the Notes reflect 10.70% of credit enhancement provided by subordinated certificates. The B (sf) rating reflects 9.10% of credit enhancement.

DBRS Morningstar previously assigned ratings to certain other classes in the TPMT 2020-3 transaction. For more information on these ratings and the transaction, including strengths, challenges, and mitigating factors, please see the press release “DBRS Morningstar Finalizes Provisional Ratings on Towd Point Mortgage Trust 2020-3” and related rating report, both dated July 17, 2020.

The DBRS Morningstar ratings of BB (sf) and B (sf) address the ultimate payment of interest and full payment of principal by the legal final maturity date in accordance with the terms and conditions of the related notes.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is RMBS Insight 1.3: U.S. Residential Mortgage-Backed Securities Model and Rating Methodology (April 1, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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