Market Overview

KBRA Assigns Preliminary Ratings to OBX 2018-EXP1 Trust (OBX 2018-EXP1)


Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 29
classes of mortgage notes from OBX 2018-EXP1 Trust (OBX 2018-EXP1).

OBX 2018-EXP1 Trust is the first residential mortgage-backed securities
(RMBS) 2.0 transaction issued by the Seller Onslow Bay Financial LLC,
(Onslow Bay) which includes a significant concentration of collateral
that KBRA considers to be "expanded prime". The collateral pool contains
both qualified mortgages (QM) and Non-qualified mortgages (Non-QM). In
addition, the pool contains loans secured by investor properties exempt
from Ability-to-Repay (ATR) rules. The $383.4 million RMBS transaction
is collateralized by a pool of 577 residential mortgages.

KBRA's rating approach incorporated loan-level analysis of the mortgage
pool through its Residential Mortgage Default and Loss Model, 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.

For complete details on the analysis, please see our pre-sale report, OBX
2018-EXP1 Trust
, which was published on July 26, 2018 on
A tear sheet summarizing certain items of the transaction can be found here.

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required,
pursuant to SEC Rule 17g-7, to provide a description of a transaction's
representations, warranties and enforcement mechanisms that are
available to investors when issuing credit ratings. KBRA's disclosure
for this transaction can be found in the report available here.

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
recognized by the National Association of Insurance Commissioners as a
Credit Rating Provider and a certified Credit Rating Agency (CRA) by the
European Securities and Markets Authority (ESMA). Kroll Bond Rating
Agency Europe Limited is registered with ESMA as a CRA.

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