Market Overview

Kroll Bond Rating Agency Assigns Final Ratings to Sequoia Mortgage Trust 2013-1 Certificates


Kroll Bond Rating Agency (KBRA) assigns final ratings to four classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2013-1, a jumbo prime RMBS transaction. Concurrently we have withdrawn our preliminary ratings on the certificates, which were assigned on January 8, 2013.

SEMT 2013-1 is the first SEMT transaction since 2012-1 to have two loan groups and to include hybrid ARMs. One loan group consists mainly of 15-year fixed rate loans and hybrid ARMs, and the second loan group consists of 30-year fixed rate loans. The transaction is also the first of the recent SEMT issuances to include a significant portion of collateral (37%) contributed by a new seller (EverBank).

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 2013-1 which was published today at

Class       Rating       Balance (USD)       Rating Action
1-A1 AAA (sf) $151,646,000 Final
1-AX AAA (sf) $151,646,000 Final
2-A1 AAA (sf) $217,189,000 Final
2-AX AAA (sf) $217,189,000 Final
B-1 NR (sf) NA Final
B-2 NR (sf) NA Final
B-3 NR (sf) NA Final
B-4 NR (sf) NA Final
B-5 NR (sf) NA Final
R NR (sf) NA Final
LT-R       NR (sf)       NA       Final

For complete details on the analysis, please see our Pre-Sale Report, Sequoia Mortgage Trust 2013-1, which was re-published on January 14th at

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
Glenn Costello, 646-731-2332
Steve McCarthy, 646-731-2343
Lenny Giltman, 646-731-2378

View Comments and Join the Discussion!

Partner Center