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Kroll Bond Rating Agency Assigns Final Ratings to Sequoia Mortgage Trust 2012-5 Certificates

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NEW YORK--(BUSINESS WIRE)--

Kroll Bond Rating Agency (KBRA) assigns final ratings to two classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2012-5, a jumbo prime RMBS transaction. Concurrently we have withdrawn our preliminary ratings on the certificates, which were assigned on October 15, 2012.

The mortgage pool backing SEMT 2012-5 is comprised of 390 first-lien mortgage loans with an aggregate principal balance of $320,339,050 as of the cut-off date. The loans in the pool are primarily 30-year fixed-rate first-lien mortgages, with the exception of three 20-year mortgages. The mortgages are of high quality as evidenced by the weighted average, 67.5% first-lien loan-to-value (LTV) ratio, and the weighted average 68.4% combined first and junior lien LTV (CLTV) ratio, which provide a substantial margin of safety against potential home price decline. While 40% of the mortgages have a CLTV of 75% or greater, no loan has a CLTV greater than 80%. Of these 40%, 23% of the mortgage loans have a CLTV of exactly 80%. The weighted average credit score of the mortgage pool is 770 and the average balance is $821,382.

KBRA's analysis of the transaction included 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.

For complete details on the analysis, please see our Pre-Sale Report, Sequoia Mortgage Trust 2012-5 which was published on October 15, 2012 at www.krollbondratings.com.

Final Ratings Assigned: SEMT 2012-5

Class   Rating   Expected Initial Class Principal
A AAA(sf) $296,954,000
A-IO AAA(sf) $296,954,000*

* Notional Balance

Related publications:

U.S. RMBS Rating Methodology, published January 9, 2012

Residential Mortgage Default and Loss Model, published January 9, 2012

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).

Kroll Bond Rating Agency
Eric Williamson, 646-731-2347
ewilliamson@krollbondratings.com
Glenn Costello, 646-731-2332
gcostello@krollbondratings.com
Steve McCarthy, 646-731-2343
smccarthy@krollbondratings.com
Lenny Giltman, 646-731-2378
lgiltman@krollbondratings.com







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