Moody's Investors Service, Kroll and Fitch have assigned their respective top expected/preliminary ratings to four classes of residential mortgage-backed securities issued by Sequoia Mortgage Trust 2013-6, the issuer’s sixth jumbo deal this year.
Fitch as it typically does also assigned some expected ratings to some subordinate tranches that the company typically does not sell. These spanned four classes and ranged from an investment grade AAsf to speculative grade BBsf. One class remained unrated.
According to Kroll’s presale report on the deal, with an original pool balance of almost $425 million it is slightly smaller in size than
“Potential counterparties are top 100 prime loan originators by volume; many have had previous relationships with Redwood and/or are known to the management team,” according to Fitch.
“Redwood’s counterparty assessment process includes a background check of management, a financial review, and a review of origination volume and other qualitative aspects relative to Redwood’s business strategy to determine the suitability of the originator.”
There is “a slight improvement in loan level characteristics and a more significant reduction in loss volatility as a result of pool diversification,” Moody’s said in a press release about the latest deal. “This pool is generally similar to or stronger than prior Sequoia pools when comparing loan level risk characteristics.”
