NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2012-6, a jumbo prime RMBS transaction.
The mortgage pool backing SEMT 2012-6 is comprised of 358 first-lien mortgage loans with an aggregate principal balance of $301,462,461 as of the cut-off date. The loans in the pool are primarily 30-year fixed-rate mortgages, with the exception of 2.02% which are 20-year mortgages. The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the average LTV (66.6%) and CLTV (67.7%). No loan has an LTV or CTLV greater than 80%. The percentage of the pool at 80% CLTV is 19%. The weighted average credit score of the mortgage pool is 771, slightly higher than average for 2012 SEMT transactions and well within the prime mortgage range.
KBRA’s analysis of the transaction includes a loan-level analysis of the mortgage pools using our Residential Mortgage Default and Loss Model, together with a review of the transaction parties, results of loan file reviews performed by independent third party firms and review of the legal structure and key documentation. This analysis is further described in our U.S. RMBS Rating Methodology.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
Preliminary Ratings Assigned: SEMT 2012-6
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* Notional Balance
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report: SEMT 2012-6 17g-7 Disclosure report.
About Kroll Bond Rating Agency
KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).