Several Jumbo RMBS Deals Issued

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New residential mortgage-backed securities backed by jumbo home loans from three different issuers have been announced in the last two months.

Redwood Residential Acquisition Corp. is securitizing Sequoia Mortgage Trust 2013-9, its ninth prime residential transaction this year, Fitch Ratings reported. The RMBS includes 606 loans for $464 million.

PrimeLendingoriginated 10 percent, WJ Bradley Mortgage Capital originated 6 percent, and the remaining originators each accounted for less than 5 percent. CitiMortgage Inc. is the master servicer, and Wilmington Trust, N.A., is the Trustee.

The weighted-average original combined loan-to-value ratio is 68.3 percent, while the weighted-average FICO is 771. Investor properties account for 5 percent of the pool, and 41 percent of the mortgages are secured by California properties.

“The representation, warranty and enforcement mechanism framework is viewed positively, as it is consistent with Fitch criteria,” the news release stated. “As in other recent Fitch-rated SEMT transactions, SEMT 2013-9 contains binding arbitration provisions that may serve to provide timely resolution to representation and warranty disputes. In addition, all loans that become 120 days or more delinquent will be reviewed for breaches of representations and warranties.”

Moody’s said that Sequoia Mortgage Trust 2013-8 is backed by 603 prime mortgages for $460 million. The loans were aggregated by Redwood and originated by 67 companies including George Mason, Cole Taylor Bank, WJ Bradley and PrimeLending — which each accounted for roughly 6 percent of originations.

The SEMT 2013-8 transaction includes an agreement by Redwood to backstop the representations and warranty repurchase obligation for financially weak originators. Wilmington Trust is the trustee, and CitiMortgage is the master servicer.

NRPMT 2013-1 is backed by 463 fully amortized, fixed-rate first mortgages for $440 million, including 52 ten-year interest-only loans, according to Kroll Bond Rating Agency. The weighted-average loan-to-value ratio is 64 percent, and the combined LTV ratio is 66 percent. The weighted average credit score is 770.

Preliminary ratings were assigned to J.P. Morgan Mortgage Trust 2013-3 by Kroll, a news release Tuesday said. The $345 million deal is backed by 389 fixed-rate 30-year jumbo mortgages, including 33 interest-only loans.

Kroll noted that the weighted-average LTV ratio is 64 percent, and the CLTV ratio is 66 percent. The weighted averaged credit score is 763.

A report from Moody’s indicated that EverBank Mortgage Loan Trust 2013-2 is backed by 367 jumbo mortgages for $303 million. Fitch said last month that it analyzed the deal.

Around $8.8 billion in subprime RMBS were unloaded by Lloyds Banking Group at a profit, the Telegraph reported in May.


Mortgage Daily Staff


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