Fitch Expects to Rate J.P. Morgan Mortgage Trust, Series 2013-1; Presale Issued

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NEW YORK--(Business Wire)--
Fitch Ratings expects to rate J.P. Morgan Mortgage Trust, Series 2013-1 as
follows:

--$244,401,000 class 1A-1 certificate 'AAAsf'; Outlook Stable;

--$244,401,000 class 1-A-IO notional certificate 'AAAsf'; Outlook Stable;

--$326,256,000 class 2A-1 certificate 'AAAsf'; Outlook Stable;

--$326,256,000 class 2-A-IO notional certificate 'AAAsf'; Outlook Stable;

--$15,406,000 class B-1 certificate 'AAsf'; Outlook Stable;

--$9,244,000 class B-2 certificate 'Asf'; Outlook Stable;

--$7,703,000 class B-3 certificate 'BBBsf'; Outlook Stable;

--$5,238,000 class B-4 certificate 'BBsf'; Outlook Stable;

The $8,012,381 class B-5 certificate will not be rated.

KEY RATING DRIVERS

High-Quality Mortgage Pool: The collateral pool consists of a mixture of 15-,
20-, and 30-year fixed rate mortgages (77%) and seven- and 10-year hybrid ARMs
(23%) to borrowers with strong credit profiles, full documentation, low
leverage, and significant liquid reserves. A 65.1% CLTV provides a significant
buffer against potential home price declines. Strong borrower quality is
reflected in the 768 weighted average (WA) FICO and $633,428 WA household
income. In addition, third-party due diligence was conducted on 100% of the pool
and the results indicated strong underwriting controls.

Weak Representations and Warranties (R&Ws) Framework: While the transaction
benefits from strong rep providers, Fitch believes the value of the R&W
framework is significantly diluted by qualifying and conditional language that
substantially reduces lender loan breach liability and the inclusion of sunsets
for a number of provisions including fraud. While the agency believes that the
high credit quality pool and clean diligence results mitigate the R&W risks to
some degree, Fitch considered the weaker framework in its expected loss
estimation and credit enhancement analysis.

Strong Counterparties: The transaction benefits from strong counterparties with
88.8% originated by JPMCB and FRB, two entities with 'above average' origination
platforms and strong financial capacities to meet potential repurchase
obligations. With respect to servicing, Fitch maintains a 'RPS2+' servicer
rating on JPMCB and views FRB as an acceptable servicer. The transaction also
benefits from the participation of an experienced master servicer, Wells Fargo
Bank, N.A. (rated 'RMS1').

Limited Alignment of Interests: While JPMCB will be providing R&Ws into the
transaction as the originator of 48.1% of the collateral pool, the sponsor, J.P.
Morgan Mortgage Acquisition Corp. (JPMMAC), does not anticipate retaining any
portion of the capital structure or associated credit risk. The lack of shared
risk between the issuer and investors is a divergence from recent transactions
that Fitch has rated.

RATING SENSITIVITIES

Fitch's analysis incorporates sensitivity analyses to demonstrate how the
ratings would react to steeper market value declines (MVDs) than assumed at both
the metropolitan statistical area (MSA) and national levels. The implied rating
sensitivities are only an indication of some of the potential outcomes and do
not consider other risk factors that the transaction may become exposed to or be
considered in the surveillance of the transaction.

Fitch conducted sensitivity analysis on areas where the model projected lower
home price declines than that of the overall collateral pool. The model
currently projects sustainable MVDs (sMVDs) at the MSA level. For three of the
top 15 regions in the mortgage pool, Fitch's SHP model does not project declines
in home prices, and for another region in the top 15, the projected decline is
less than 5.00%. These regions include Chicago-Joliet-Naperville in Illinois
(5.6%), Boston-Quincy in Massachusetts (4.1%), Phoenix-Mesa-Glendale in Arizona
(2.3%), and Houston-Sugar Land-Baytown in Texas (1.7%). The sensitivity analyses
indicated no impact on ratings for all bonds in each scenario.

Another sensitivity analysis focused on how the ratings would react to steeper
MVDs at the national level. The analysis assumes MVDs of 10%, 20%, and 30%, in
addition to the model projected 14% for this pool. The analysis indicates there
is some potential rating migration with higher MVDs, compared with the model
projection.

Fitch's stress and rating sensitivity analysis are discussed in the presale
report titled ' J.P. Morgan Mortgage Trust, Series 2013-1', dated March 20,
2013, which is available on Fitch's web site, www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'U.S. RMBS Loan Loss Model Criteria' (Aug. 10, 2012);

--'U.S. RMBS Rating Criteria' (July 10, 2012).

Applicable Criteria and Related Research J.P. Morgan Mortgage Trust, Series
2013-1 (US RMBS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=702197

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

U.S. RMBS Loan Loss Model Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685646

U.S. RMBS Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684228

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF
CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE
SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS
SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED
ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
WEBSITE.

Fitch Ratings
Primary Analyst
Patrick Gervais
Director
+1-212-908-9132
Fitch Ratings, Inc.
One State Street Plaza
New York, NY
or
Secondary Analyst
Michele Patterson
Senior Director
+1-212-908-0779
or
Committee Chairperson
Grant Bailey
Managing Director
+1-212-908-0544
or
Media Relations
Sandro Scenga
+1-212-908-0278
sandro.scenga@fitchratings.com

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