Securitization

The transaction is also the first securitization for ACREC. The entity is also taking on multiple roles, acting as sponsor, issuer and collateral manager.

Sequoia Mortgage Trust is among the first to include a distributed ledger agent in its reporting processes.

While the loss coverage is subsequently lower for the notes, totaling $194.2 million, it is expected to be sufficient to cover required rating multiples.

The Loan Syndications and Trading Association alerts market participants to the challenges of term-SOFR transition before year-end.

Low pool concentrations of loans on properties located in Ida's path, plus robust property insurance are expected to rein in impacts and insulate noteholders.

A majority of the deal was underwritten to a less-than-full documentation standard, but meets ATR standards. Almost half of the loans are on California homes.

The deal appears to take advantage of a shift in federal rules reducing the level of non-owner-occupied loans Fannie Mae and Freddie Mac can purchase.

The proceeds from the trust’s certificates will refinance some CMBS debt, among other balance sheet uses.

Financial institutions will have until early October to weigh in about new risk-based capital requirements for nonbanks.

Officials have pledged to maintain bond buying until the economy shows "substantial further progress" on inflation and employment as it recovers from COVID-19.