MBS

Conforming single-family homes, 65.3%, comprise most of the portfolio, and none of the borrowers in the portfolio had availed themselves of COVID-19 related forbearance.

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

The varied portfolio includes loans with strong credit profiles, a WA FICO score of 734 and an original, combined loan-to-value of 68.3%.

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.

All but 501 of the loans in the pool were assessed following the new general QM rule. Otherwise, the pool is largely comprised of jumbo, prime loans.

Just a handful of loans in the securitized pool of investor properties, or 0.7%, had been enrolled in a coronavirus related forbearance plan.

The 10 largest loans in the deal have high balances, ranging from $2 million to $2.9 million, and California represents half of it’s geographic concentration.

Industry observers say they expect current market conditions to support healthy deal flow through the end of 2021.

Primarily, the underlying mortgage collateral consists of 1,982 peak-vintage seasoned and re-performing loans, about 90% of which have been modified.

Single-family rental houses and townhomes underpin the securitization, with a feature to transfer or obtain a release of any property that meets conditions.