NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency, Inc. (KBRA) assigns preliminary ratings to fifty-three classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2016-3 (SEMT 2016-3), a prime jumbo RMBS transaction.
The SEMT 2016-3 mortgage pool is composed of 465 first-lien mortgage loans with an aggregate principal balance of $343,179,541 as of the cut-off date. The pool consists entirely of fully-amortizing, fixed-rate mortgages (FRMs), all of which have 30-year maturities. The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the WA original LTV of 68.4% and WA original CLTV of 68.9%. The weighted average original credit score is 769, which is within the prime mortgage range.
KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Mortgage Default and Loss Model, an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.
For complete details on the analysis, please see our Pre-Sale Report, Sequoia Mortgage Trust 2016-3, which was published on October 6, 2016 on www.kbra.com.
To view the report, please click here.
Mortgage Default and Loss Model, published January 16, 2015
U.S. RMBS Rating Methodology for Assessing Non-QM Risk, published April 22, 2014
U.S. RMBS Rating Methodology, published July 7, 2016
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About Kroll Bond Rating Agency
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).