TCR_Public/170429.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

              Saturday, April 29, 2017, Vol. 21, No. 118


COLT 2017-1 : DBRS Assigns B Rating to Class B-2 Certificates
INTERNATIONAL SHIPHOLDING: Posts $3.28 Million Net Loss in February
MEMORIAL PRODUCTION: Gains $1.79 Million Net Income in February
VANGUARD NATURAL: Reports $5,903 Net Income in February


COLT 2017-1 : DBRS Assigns B Rating to Class B-2 Certificates
DBRS, Inc. assigned provisional ratings to the Mortgage
Pass-Through Certificates, Series 2017-1 (the Certificates) issued
by COLT 2017-1 Mortgage Loan Trust (the Trust) as follows:

-- $265.3 million Class A-1 at AAA (sf)
-- $33.2 million Class A-2 at AA (sf)
-- $47.3 million Class A-3 at A (sf)
-- $16.5 million Class M-1 at BBB (sf)
-- $15.1 million Class B-1 at BB (sf)
-- $10.7 million Class B-2 at B (sf)

The AAA (sf) ratings on the Certificates reflect the 34.10% of
credit enhancement provided by subordinated Certificates in the
pool. The AA (sf), A (sf), BBB (sf), BB (sf) and B (sf) ratings
reflect 25.85%, 14.10%, 10.0%, 6.25% and 3.60% of credit
enhancement, respectively.

Other than the specified classes above, DBRS does not rate any
other classes in this transaction.

This transaction is a securitization of a portfolio of fixed- and
adjustable-rate, prime and non-prime, first-lien residential
mortgages. The Certificates are backed by 853 loans with a total
principal balance of $402,646,289 as of the Cut-Off Date (April 1,

Caliber Home Loans, Inc. (Caliber) is the originator and servicer
for 78.3% of the portfolio. The Caliber mortgages were originated
under the following five programs:
(1) Premier Access (40.8%) – Generally made to borrowers with
unblemished credit seeking larger balance mortgages. These loans
may have interest-only features, higher debt-to-income (DTI) and
loan-to-value (LTV) ratios or lower credit scores compared with
those in traditional prime jumbo securitizations.

(2) Homeowner's Access (23.9%) – Made to borrowers who do not
qualify for agency or prime jumbo mortgages for various reasons,
such as loan size in excess of government limits, alternative or
insufficient credit or prior derogatory credit events that occurred
more than two years prior to origination.
(3) Fresh Start (10.2%) – Made to borrowers with lower credit and
significant recent credit events within the past 24 months.

(4) Investor (2.9%) – Made to borrowers who finance investor
properties where the mortgage loan would not meet agency or
government guidelines because of such factors as property type,
number of financed properties, lower borrower credit score or a
seasoned credit event.

(5) Foreign National (0.4%) – Made to non-resident borrowers
holding certain types of visas who may not have a credit score.

Sterling Bank and Trust, FSB (Sterling) is the originator and
servicer for 21.7% of the portfolio. The Sterling mortgages were
originated under Sterling’s Advantage Home Ownership Program
(Advantage), which focuses on high-quality borrowers with clean
mortgage payment histories and substantial equity in their
properties who seek alternative income documentation products.

Wells Fargo Bank, N.A. (Wells Fargo) will act as the Master
Servicer, Securities Administrator and Certificate Registrar. U.S.
Bank National Association will serve as Trustee.

Although the mortgage loans were originated to satisfy the Consumer
Financial Protection Bureau (CFPB) ability-to-repay (ATR) rules,
they were made to borrowers who generally do not qualify for
agency, government or private label non-agency prime jumbo products
for various reasons described above. In accordance with the CFPB
Qualified Mortgage (QM) rules, 1.3% of the loans are designated as
QM Safe Harbor, 26.1% as QM Rebuttable Presumption and 69.3% as
non-QM. Approximately 3.3% of the loans are not subject to the QM

The servicers will generally fund advances of delinquent principal
and interest on any mortgage until such loan becomes 180 days
delinquent and they are obligated to make advances in respect of
taxes, insurance premiums and reasonable costs incurred in the
course of servicing and disposing of properties.

On or after the earlier of (1) the two-year anniversary of the
Closing Date and (2) the date when the aggregate stated principal
balance of the mortgage loans is reduced to 20% of the Cut-Off Date
balance, the Depositor has the option to purchase all of the
outstanding certificates at a price equal to the outstanding class
balance plus accrued and unpaid interest, including any cap
carryover amounts.

The transaction employs a sequential-pay cash flow structure with a
pro rata principal distribution among the senior tranches.
Principal proceeds can be used to cover interest shortfalls on the
Certificates as the outstanding senior Certificates are paid in

The ratings reflect transactional strengths that include the
(1) ATR Rules and Appendix Q Compliance: All of the mortgage loans
were underwritten in accordance with the eight underwriting factors
of the ATR rules. In addition, Caliber’s underwriting standards
comply with the Standards for Determining Monthly Debt and Income
as set forth in Appendix Q of Regulation Z with respect to income
verification and the calculation of DTI ratios.

(2) Strong Underwriting Standards: Whether for prime or non-prime
mortgages, underwriting standards have improved significantly from
the pre-crisis era. The Caliber loans were underwritten to a full
documentation standard with respect to verification of income
(generally through two years of W-2s or tax returns), employment
and asset. Generally, fully executed 4506-Ts are obtained and tax
returns are verified with IRS transcripts if applicable. Although
loans in the Sterling Advantage program were primarily underwritten
to limited documentation standards, borrowers are required to have
strong credit profiles, substantial equity in their properties and
generally no delinquencies in the past 12 months. The Sterling
loans were all originated through the retail channel and have a
weighted-average (WA) original CLTV of 61.6%.

(3) Robust Loan Attributes and Pool Composition:
-- The mortgage loans in this portfolio generally have robust
    loan attributes as reflected in combined LTV ratios, borrower
    household income and liquid reserves, including the loans in
    Homeowner’s Access and Fresh Start, the two programs with
    weaker borrower credit.
-- The pool contains low proportions of cash-out and investor
-- As the programs move down the credit spectrum, certain
    characteristics, such as lower LTVs or DTIs, suggest the
    consideration of compensating factors for riskier pools.
-- The pool comprises 25.9% fixed-rate mortgages, which have the

    lowest default risk because of the stability of monthly
    payments. The pool comprises 56.4% hybrid adjustable-rate
    mortgages (ARMs) with an initial fixed period of five to ten
    years, allowing borrowers sufficient time to credit cure
    before rates reset. The pool also includes hybrid ARMs with
    initial fixed periods of one year (9.9%) and three years
    (7.8%), all originated by Sterling.

(4) Satisfactory Third-Party Due Diligence Review: A third-party
due diligence firm conducted property valuation, credit and
compliance reviews on 100% of the loans in the pool. Data integrity
checks were also performed on the pool.

(5) Satisfactory Loan Performance to Date (Albeit Short): Caliber
began originating loans under the five programs in Q4 2014. Since
the first transaction issued in November 2015, the historical
performance for the COLT shelf has been robust, albeit short. For
the four previous non-QM transactions issued from the COLT shelf,
as of March 2017, 60+ day delinquency rates ranged from 0.0% to
2.4% and cumulative losses ranged from 0.0% to 0.05%. In addition,
voluntary prepayment rates have been relatively high, as these
borrowers tend to credit cure and refinance into lower-rate

The transaction also includes the following challenges and
mitigating factors:

(1) Representations and Warranties (R&W) Framework and Provider:
The R&W framework is considerably weaker compared with that of a
post-crisis prime jumbo securitization. Instead of an automatic
review when a loan becomes seriously delinquent, this transaction
employs an optional review only when realized losses occur (unless
the alleged breach relates to an ATR or TRID violation). In
addition, rather than engaging a third-party due diligence firm to
perform the R&W review, the Controlling Holder (initially the
Sponsor or a majority-owned affiliate of the Sponsor) has the
option to perform the review in house or use a third-party
reviewer. Finally, the R&W providers (each originator) are unrated
entities, have limited performance history of non-prime, non-QM
securitizations and may potentially experience financial stress
that could result in the inability to fulfill repurchase
obligations. DBRS notes the following mitigating factors:

-- The holders of Certificates representing 25% interest in the
    Certificates may direct the Trustee to commence a separate
    review of the related mortgage loan, to the extent they
    disagree with the Controlling Holder's determination of a

-- Third-party due diligence was conducted on 100% of the loans
    included in the pool. A comprehensive due diligence review
    mitigates the risk of future R&W violations.

-- DBRS conducted on-site originator (and servicer) reviews of
    Caliber and Sterling and deems them to be operationally sound.

-- The Sponsor or an affiliate of the Sponsor will retain the
    Class B-2, Class B-3 and Class X Certificates, which represent

    at least 5% of the fair value of all the Certificates,
    aligning Sponsor and investor interest in the capital

-- Notwithstanding the above, DBRS adjusted the originator scores

    downward to account for the potential inability to fulfill
    repurchase obligations, the lack of performance history as
    well as the weaker R&W framework. A lower originator score
    results in increased default and loss assumptions and provides

    additional cushions for the rated securities.

(2) Non-Prime, QM-Rebuttable Presumption or Non-QM Loans: As
compared with post-crisis prime jumbo transactions, this portfolio
contains some mortgages originated to borrowers with weaker credit
and prior derogatory credit events, as well as QM-rebuttable
presumption or non-QM loans.

-- All loans were originated to meet the eight underwriting
    factors as required by the ATR rules. The Caliber loans were
    also underwritten to comply with the standards set forth in
    Appendix Q.

-- Underwriting standards have improved substantially since the
    pre-crisis era.

-- DBRS RMBS Insight model incorporates loss severity penalties
    for non-QM and QM Rebuttable Presumption loans, as explained
    further in the Key Loss Severity Drivers section of the
    related presale report.

-- For loans in this portfolio that were originated through the
    Homeowner's Access and Fresh Start programs, borrower credit
    events had generally happened, on average, 36 months and 18
    months, respectively, prior to origination. In its analysis,
    DBRS applies additional penalties for borrowers with recent
    credit events within the past two years.

(3) Servicer Advances of Delinquent Principal and Interest: The
servicers will advance scheduled principal and interest on
delinquent mortgages until such loans become 180 days delinquent.
This will likely result in lower loss severities to the transaction
because advanced principal and interest will not have to be
reimbursed from the trust upon the liquidation of the mortgages but
will increase the possibility of periodic interest shortfalls to
the Certificateholders. Mitigating factors include that principal
proceeds can be used to pay interest shortfalls to the Certificates
as the outstanding senior Certificates are paid in full, as well as
the fact that subordination levels are greater than expected
losses, which may provide for payment of interest to the
Certificates. DBRS ran cash flow scenarios that incorporated
principal and interest advancing up to 180 days for delinquent
loans; the cash flow scenarios are discussed in more detail in the
Cash Flow Analysis section of the related presale report.

(4) Servicers' Financial Capability: In this transaction, the
servicers, Caliber and Sterling, are responsible for funding
advances to the extent required. The servicers are unrated entities
and may face financial difficulties in fulfilling their servicing
advance obligations in the future. Consequently, the transaction
employs Wells Fargo, rated AA (high) by DBRS, as the Master
Servicer. If a servicer fails in its obligation to make advances,
Wells Fargo will be obligated to fund such servicing advances.

The DBRS ratings of AAA (sf) and AA (sf) address the timely payment
of interest and full payment of principal by the legal final
maturity date in accordance with the terms and conditions of the
related Certificates. The DBRS ratings of A (sf), BBB (sf), BB (sf)
and B (sf) address the ultimate payment of interest and full
payment of principal by the legal final maturity date in accordance
with the terms and conditions of the related Certificates.

INTERNATIONAL SHIPHOLDING: Posts $3.28 Million Net Loss in February
International Shipholding Corporation, on March 15, 2017, filed
with the U.S. Securities and Exchange Commission its monthly
operating report for February 2017.

The Debtor's statement of operations showed a net loss of $3.28
million on $15.13 million of gross revenue for the month, as
compared to $9.38 million net loss reported for January.

As of February 28, 2017, the Debtor recorded total assets of
$244.36 million, $48.10 million in total post-petition liabilities,
$160.87 million in total pre-petition liabilities, and $35.40
million in total shareholders' equity.

At the start of the month, the Debtor had $28.28 million cash.  It
listed total cash receipts of $49.68 million and a total
disbursements of $44.03 million.  At month end, the Debtor had
$33.94 million cash.

A copy of the monthly operating report is available at the SEC at:


               About International Shipholding

International Shipholding Corp. filed a Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 16-12220) on July 31, 2016.  Its affiliated
debtors also filed separate Chapter 11 petitions.  The petitions
were signed by Manuel G. Estrada, vice president and chief
financial officer.

International Shipholding Corp. was engaged in waterborne cargo
transportation and maintained a diversified customer base with
emphasis on medium and long term contracts.  ISH was founded in
1947 when the Johnsen family purchased a Liberty Ship after the
establishment of the War Ship Act of 1946 and became a public
company in 1979.  Through its debtor and non-debtor subsidiaries,
International Shipholding now operates a diversified fleet of 21
U.S. and foreign flag vessels that provide domestic and
international maritime transportation services to commercial and
governmental customers primarily under medium to long-term
contracts.  As of the Petition Date, International Shipholding
maintained offices in Mobile, Alabama, New Orleans, Louisiana, New
York, New York, and Tampa, Florida, as well as a network of
agencies in major cities worldwide.

ISH, which was formed as a Delaware corporation in 1978 and became
a public company in 1979, is the ultimate corporate parent of the
International Shipholding family of companies. International
Shipholding's fleet is operated by ISH's principal Debtor and
non-Debtor subsidiaries, including Central Gulf Lines, Inc.,
Waterman Steamship Corporation, Enterprise Ship Company, Inc., U.S.
United Ocean Services, LLC, CG Railway, Inc., LCI Shipholdings,
Inc., Sulphur Carriers, Inc., and East Gulf Shipholding, Inc.  

Certain other of ISH's Debtor subsidiaries, including LMS
Shipmanagement, Inc. and N. W. Johnsen & Co., Inc., provide ship
management, ship charter brokerage, agency and other specialized
services. C.G. Railway Inc., Cape Holding LTD, Dry Bulk Cape
Holding, Inc., East Gulf Shipholding, Inc., MPV Netherlands C.V.,
MPV Netherlands Cooperatief U.A., MPV Netherlands B.V., Bulk
Shipholding Inc., and Terminales Transgolfo S.A. de C.V. are not
debtors in these Chapter 11 cases.

The Debtors are represented by David H. Botter, Esq., Sarah Link
Schultz, Esq., and Travis A. McRoberts, Esq., at Akin Gump Strauss
Hauer & Feld LLP. The Debtors' Restructuring Advisor is Blackhill
Partners, LLC. Their Claims, Noticing & Balloting Agent is Prime
Clerk LLC.

The Debtors disclosed total assets at $305.1 million and total
debts at $226.8 million as of March 31, 2016.

William K. Harrington, the U.S. Trustee for the Southern District
of New York, on Sept. 1, 2016, appointed three creditors to serve
on the official committee of unsecured creditors of International
Shipholding Corporation.  The committee retained Pachulski Stang
Ziehl & Jones LLP as counsel, and AMA Capital Partners, LLC as
financial advisor.

                       *     *     *

On Oct. 28, 2016, the Debtors filed a motion to sell certain assets
contained in the Specialty Business Segment.  On Nov. 18, 2016, the
Bankruptcy Court entered an order approving the bidding and auction
procedures in connection with such sale.  The auction was held on
Dec. 15, 2016.  The Bankruptcy Court held a hearing to consider
approval of the sale on Dec. 20.  On Jan. 30, 2017, the Bankruptcy
Court entered an order authorizing the sale. The sale closed on
Feb. 28, 2017.

On Nov. 14, 2016, the Debtors filed their Plan of Reorganization
and the Disclosure Statement.  The Bankruptcy Court approved the
Disclosure Statement on January 10, 2017.  On March 2, 2017, the
Bankruptcy Court entered an order confirming the Plan.

MEMORIAL PRODUCTION: Gains $1.79 Million Net Income in February
Memorial Production Partners LP, et al., filed with the U.S.
Securities and Exchange Commission their monthly operating report
for February 2017.

The Debtors statement of operations showed a net income of $1.79
million on $26.05 million of total revenues for February.

As of February 28, 2017, the Debtors posted total assets of $1.90
billion, $1.82 billion in total liabilities, and $84.10 million in
total shareholders' equity.

The Debtors listed total cash receipts of $40.60 million and total
cash disbursements of $23.94 million.  

A copy of the monthly operating report is available at the SEC at:


            About Memorial Production Partners LP

Memorial Production Partners LP -- is
a publicly traded partnership engaged in the acquisition,
production and development of oil and natural gas properties in the
United States. MEMP's properties consist of mature, legacy oil and
natural gas fields. MEMP is headquartered in Houston, Texas.

Memorial Production Partners LP, Memorial Production Finance
Corporation and their debtor-affiliates filed a Chapter 11 petition
(Bankr. S.D. Tex. Lead Case No. 17-30262) on January 16, 2017.  The
cases are assigned before the Hon. Marvin Isgur.

The Debtors are represented by Alfredo R. Perez, Esq., at Weil,
Gotshal & Manges LLP, in Houston, Texas; and Gary T. Holtzer, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, New
York.  The Debtors' financial advisor is Perella Weinberg Partners
LP.  The Debtors' Restructuring Advisor is Alixpartners, LLP.  The
Debtors' claims, noticing, and solicitation agent is Rust
Consulting/Omni Bankruptcy.

At the time of filing, the Debtors had estimated assets of $1
billion to $10 billion and estimated debts of $1 billion to $10

VANGUARD NATURAL: Reports $5,903 Net Income in February
Vanguard Natural Resources, LLC, et al., on March 30, 2017, filed
with the U.S. Securities and Exchange Commission their monthly
operating report for February 2017.

The Debtors' statement of operations reflected a net income of
$5,903 on $44,497 of revenues for the month.

As of February 28, 2017, the Debtors recorded total assets of $1.31
million, $2.20 million in total liabilities, and a total
shareholders' equity of -$890,188.

At the start of the month, the Debtors had $32,197 cash.  They
listed total cash receipts of $62,184 and total disbursements of
$42,718.  At month end, the Debtors had $51,662 cash.

A copy of the monthly operating report is available at the SEC at:


               About Vanguard Natural Resources

Vanguard Natural Resources, LLC -- is a  

publicly traded limited liability company focused on the
acquisition, production and development of oil and natural gas
properties.  Vanguard's assets consist primarily of producing and
non-producing oil and natural gas reserves located in the Green
River Basin in Wyoming, the Permian Basin in West Texas and New
Mexico, the Gulf Coast Basin in Texas, Louisiana, Mississippi and
Alabama, the Anadarko Basin in Oklahoma and North Texas, the
Piceance Basin in Colorado, the Big Horn Basin in Wyoming and
Montana, the Arkoma Basin in Arkansas and Oklahoma, the Williston
Basin in North Dakota and Montana, the Wind River Basin in
Wyoming, and the Powder River Basin in Wyoming.

The Debtors listed total assets of $1.54 billion and total debts
of $2.3 billion as of Feb. 1, 2017.

Paul Hastings LLP is serving as legal counsel and Evercore
Partners is acting as financial advisor to Vanguard.  Opportune LLP
is the Company's restructuring advisor.  Prime Clerk LLC is serving
as claims and noticing agent.

Judy R. Robbins, the U.S. Trustee for Region 7, on Feb. 14
appointed three creditors to serve on the official committee of
unsecured creditors appointed in the Chapter 11 case of Vanguard
Natural Resources, LLC.

Attorneys for Citibank, N.A, as administrative agent under the
Third Amended and Restated Credit Agreement, dated as of September
30, 2011, are Chris Lopez, Esq., Stephen Karotkin, Esq., and
Joseph H. Smolinsky, Esq., at Weil Gotshal & Manges LLP.


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