Redwood Trust has issued
The $431 million deal was assigned ratings from Standard & Poor’s and Kroll Bond Rating Agency. Six tranches totaling $426.6 million were rated AAA by both agencies. The two interest only tranches were also rated AAA by both.
The A-V certificates were not rated by S&P but rated AA by KBRA.
The $4.5 million A-P certificates were rated AAA and AA by S&P and KBRA, respectively.
None of the six subordinated tranches totaling $32.4 million were rated by S&P. They were rated AA, A, BBB BB, and not rated, respectively, by KBRA.
The 68% first-lien loan-to-value, and the 68% combined first- and junior-lien LTV, provide a substantial margin of safety against potential home price declines, the report said. The top of originators of the loans are Prime Lending (9.8%) and WJ Bradley (5.9%).
The geographic concentration in SEMT 2013-9 is lower than nearly all prior SEMT transaction, according to KBRA. The top three locations are California (40.8%), Texas (7.6%) and Illinois (6.3%). This is consistent with the typical geographic concentration of pools of jumbo loans, which tend to be high, with significant exposure to assets located in California as well as a number of other major metropolitan areas, said KBRA.
Like previous SEMT transactions, the 2013-9 pool benefits from high credit quality borrowers. The weighted average FICO score of the homeowners in the pool is 771.
CitiMortgage will act as master servicer for the notes.
Redwood was last in the market with its Sequoia Mortgage Trust 2013-8 RMBS on May 30, 13 days after its SEMT 2013-7 transaction.
