NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to fifty-three classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2017-1 (SEMT 2017-1), a prime jumbo RMBS transaction.
The SEMT 2017-1 mortgage pool is composed of 460 first-lien mortgage loans with an aggregate principal balance of $343,281,354 as of the cut-off date. The underlying collateral consists entirely of fully-amortizing, fixed-rate mortgages (FRMs). The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the WA original LTV of 66.1% and WA original CLTV of 66.8%. 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 2017-1, which was published on January 5, 2017 on www.kbra.com.
To view the report, please click here.
Representations & Warranties Disclosure
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 entitled Sequoia Mortgage Trust 2017-1 Representations and Warranties Disclosure
Related Publications: (available at www.kbra.com)
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
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).