GALTON MORTGAGE PRO
GALTON MORTGAGE SERIES
GALTON MORTGAGE MAC

In other words, investors are not entitled to any interest on such severely delinquent mortgages unless such interest amounts are recovered. The interest entitlements, through the calculation of the Net WAC Rate, are reduced by the delinquent interest that would have accrued on the stop advance loans (i.e., loans that become 120 or more days delinquent or loans for which the Servicer determines that the principal and interest (P&I) advance would not be recoverable). Similar to the prior four Galton securitizations, this transaction incorporates a unique feature in the calculation of interest entitlements of the Certificates. Furthermore, excess spread will be used to cover losses in the current period or those allocated in prior periods. Principal proceeds can be used to cover interest shortfalls on Certificates that have principal payment priority in a given period.

GALTON MORTGAGE PRO

The transaction contains a sequential-pay cash flow structure with a pro rata principal distribution among the senior tranches. The pool’s WAC is higher than Galton’s prior shifting-interest securitizations and, as a result, this transaction employs a cash flow structure that is similar to Galton’s previous high coupon securitization (GFMT 2019-H1) and many non-Qualified Mortgage (QM) securitizations.

GALTON MORTGAGE MAC

The pool’s weighted-average coupon (WAC) is 5.282% and the loans have rates that are generally 1.29% or more above market mortgage rates as measured by the Freddie Mac Primary Mortgage Market Survey. GFMT 2020-H1 is Galton’s second securitization that comprises a targeted mortgage loan collateral pool generally based on the interest rate of the loans.

The Sponsor selected the mortgage loans from a pool of loans originated via the Galton Funding (Galton) Platform and held by acquisition trusts that meet the Galton acquisition criteria. The mortgage loans were acquired by Galton Mortgage Acquisition Platform IV H Sponsor LLC (the Sponsor). The Certificates are backed by 316 loans with a total principal balance of $245,399,156 as of the Cut-Off Date. Other than the specified classes above, DBRS Morningstar does not rate any other classes in this transaction. The AAA (sf) rating on Class A1 reflects 22.85% of credit enhancement provided by subordinated notes in the pool. $10.1 million Class M1 at BBB (low) (sf) $13.9 million Class A2 at AA (high) (sf)

GALTON MORTGAGE SERIES

(DBRS Morningstar) finalized its provisional ratings on the Mortgage Pass-Through Certificates, Series 2020-H1 (the Certificates) issued by Galton Funding Mortgage Trust 2020-H1 (GFMT 2020-H1 or the Issuer) as follows:

Galton mortgage