Mortgage Daily Logo

Jumbo Issuer’s Loans Perform Well

Mortgage News

Out of all the jumbo mortgages included in residential mortgage-backed securities issued by Redwood Residential Acquisition Corp. during the last two years, none have become significantly past due.

The Mill Valley, Calif., has securitized 1,842 prime jumbo loans since 2010. The mortgages were originated through third parties — reducing the staffing level needed to support Redwood’s production.

The loans were all issued through Redwood’s shelf, Sequoia Mortgage Trust.

A report from Moody’s Investors Service indicated than none of the loans backing the securities have become 60 days delinquent.

The strong loan performance prompted Moody’s to rate Redwood’s aggregator ability as above average.

The New York-based ratings agency said that the assessment was largely based on Redwoods’ ability to manage and control loan quality on its purchases.

“Redwood takes a selective approach to approving sellers, has conservative program eligibility and underwriting guidelines and properly ensures reliable appraisal reports and regulatory compliance for the loans they acquire,” Moody’s stated.

Redwood’s aggregator stability is above average, as is its legal affairs and oversight. Moody’s noted that the level of litigation compared to other large aggregators active during the housing boom is low.

Management strength and staff quality and technology are strong, as is its credit risk management, Moody’s said.

But the jumbo issuer’s financial strength was rated as below average because of its structure as a monoline mortgage finance company that is vulnerable to market valuation fluctuations.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam