Jumbo RMBS Issuance Ahead

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MORTGAGE EXPERT
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A pool of prime residential jumbo loans is being readied for issuance.

Word of the non-agency securitization came Tuesday from Fitch Ratings.

According to the New York-based firm, the private-label residential mortgage-backed securities include prime jumbo home loans.

The certificates are being issued as Mortgage Trust 2011-2 Mortgage Pass-Through Certificates, Series 2011-2. It’s the second prime mortgage transaction this year for Redwood Residential Acquisition Corp.

As of the cut-off date, the aggregate pool had a total balance of $375,227,254.

The top-rated class received an AAAsf rating from Fitch.

“Fitch’s ratings reflect the high quality of the mortgage pool, the strong historical performance of the two originators and servicers, First Republic Bank and PHH Mortgage Corp., the clear capital structure and the high percentage of loans reviewed by third party underwriters,” the ratings agency said. “In addition, Wells Fargo Bank, N.A. will act as the master servicer and U.S. Bank, N.A. will act as the Trustee, for the transaction.”

More than half of the underlying loans were originated by First Republic Bank, while over a quarter were originated by PHH Mortgage Corp. The rest were generated by Wells Fargo Home Mortgage, SunTrust Mortgage Inc., PrimeLending and Sterling Savings Bank.

As of the cutoff date, the weighted-average original combined loan-to-value ratio was 64 percent and the weighted-average coupon was 4.9 percent. The weighted average original FICO credit score was 773.

Fitch said that 95 percent of the loans are owner-occupied and a majority was refinance transactions. While most of the loans are fully amortizing, 1 percent are interest-only.

The average loan balance was $793,292.

Mortgage Expert

Mortgage Daily Staff

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