Kroll Bond Rating Agency Assigns Final Ratings to Sequoia Mortgage Trust 2012-5 Certificates
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 Concurrently we have withdrawn our preliminary ratings on the certificates, which were assigned on October 15, 2012.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.
Final Ratings Assigned: SEMT 2012-5
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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).