Market Overview

KBRA Assigns Ratings to Homeward Opportunities Fund I Trust 2018-1 (HOF I 2018-1)

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Kroll Bond Rating Agency, Inc. (KBRA) assigns ratings to six classes of
mortgage pass-through certificates from Homeward Opportunities Fund I
Trust 2018-1 (HOF I 2018-1), a $485.5 million non-prime RMBS transaction
issued by Homeward Opportunities Fund I LP as sponsor.

HOF I 2018-1 represents the first non-prime RMBS transaction from
Homeward Opportunities Fund I LP, an affiliate of Neuberger Berman
Investment Advisers LLC. The transaction primarily consists of non-prime
collateral, with most of the loans underwritten using non-traditional
income documentation sources, such as bank statements (63.1%) and
investment property cash flow (22.6%). None of the pool's 1,199 loans
are "qualified mortgage" loans, as they were either designated as
non-qualified mortgages (Non-QM, 67.7%) or investor properties loans
that were exempt from the ATR rule (32.3%).

The underlying collateral consists of a mix of hybrid adjustable-rate
mortgages (70.3%) and fixed-rate mortgages (29.7%), with 15.2% of the
pool possessing an interest-only period. Loans in the pool exhibit
substantial borrower equity in each mortgaged property, as evidenced by
the WA original LTV and CLTV of 66.8% and 66.9%%, respectively. The
non-zero weighted average original credit score is 725.

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,
Homeward Opportunities Fund I Trust 2018-1, which was published on July
31, 2018 on www.kbra.com.

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 entitled, HOF
2018-1 Trust Representations and Warranties Disclosure
.

Related Publications: (available
at www.kbra.com)

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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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