KBRA assigns a preliminary rating of ‘BBB- (sf)’ to the Series 2024-FT1 Note from FMC Issuer Trust-FMSR, master trust issuer of notes backed by a participation certificate representing an interest in MSRs that are created on mortgage loans owned by Fannie Mae or otherwise included in Fannie Mae MBS and serviced by FMC. The participation interest represent an interest in a portion of servicing fees payable to FMC as Servicer under the Fannie Mae Lender Contract, the agreement pursuant to which the Servicer performs loan servicing functions and is entitled to retain servicing fees and to collect certain ancillary income in accordance with the Fannie Mae Guide.

The rating is primarily dependent on the credit rating of FMC (KBRA Rating: BB+/Stable) as obligor under a repo facility in support of the Issuer’s rights to MSRs granted by Fannie Mae to FMC with certain transaction features providing one notch uplift on the rating of the notes. The notes are not a direct debt obligation of FMC or its affiliates; however, FMC’s obligations under the PC Repurchase Agreement creates a significant indirect dependency on FMC to make payments on the offered notes.

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Methodologies

• Corporates & Financial Institutions: Corporate Instruments / Corporate-Linked Obligations Notching Global Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• Financial Institutions: U.S. Residential Mortgage Company Rating Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1006140

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