KBRA Assigns Preliminary Ratings to Sequoia Mortgage Trust 2018-4 (SEMT 2018-4)
April 16 2018 - 5:19PM
Business Wire
Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to
fifty-four classes of mortgage pass-through certificates from
Sequoia Mortgage Trust 2018-4 (SEMT 2018-4), a prime RMBS
transaction. SEMT 2018-4 contains both prime jumbo (79.5%) and
high-balance conforming (20.5%) collateral to borrowers with prime
attributes.
The SEMT 2018-4 mortgage pool is composed of 493 first-lien
mortgage loans with an aggregate principal balance of $338,667,575
as of the cut-off date. The underlying collateral consists entirely
of fully-amortizing, fixed-rate mortgages. The pool is
characterized by substantial borrower equity in each mortgaged
property, as evidenced by the WA original LTV of 69.4% and WA
original CLTV of 69.9%. The weighted average original credit score
is 770, 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 2018-4, which was published
on April 12, 2018 on www.kbra.com. A tear sheet summarizing
certain items of the transaction can be found 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 available here.
Related Publications:
(available at www.kbra.com)
- Residential Mortgage Default and
Loss Model
- U.S. RMBS Rating Methodology for
Assessing Non-QM Risk
- U.S. RMBS Rating
Methodology
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About KBRA and KBRA
Europe
KBRA is a full service credit rating agency registered with the
U.S. Securities and Exchange Commission as an NRSRO. In addition,
KBRA is recognized by the National Association of Insurance
Commissioners as a Credit Rating Provider and a certified Credit
Rating Agency (CRA) by the European Securities and Markets
Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.
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version on businesswire.com: https://www.businesswire.com/news/home/20180416006515/en/
Kroll Bond Rating AgencyAnalytical:Kristymarie Cariello,
646-731-2494Directorkcariello@kbra.comorGary Narvaez,
646-731-2478Directorgnarvaez@kbra.comorJack Kahan,
646-731-2486Managing Directorjkahan@kbra.com