Redwood Trust yesterday filed a registration statement with the Securities and Exchange Commission for its eighth jumbo mortgage securitization of the year.
The deal, Sequoia Mortgage Trust 2013-8 will be underwritten by Merrill Lynch and Pierce, Fenner & Smith.
According to the filing the transaction will be backed by a pool of approximately $463.5 million of mortgage loans. The loans in the pool are all fixed-rate mortgages, with 30-year maturities, four 15-year maturities, four 20-year maturities, and one 25-year maturity. There are no interest-only loans in the pool.
Kroll Bond Rating Agency (KBRA) and Fitch Ratings have both assigned a preliminary ratings of triple-A, double-A, single-A, triple-B and double-B to the deal’s class A, B-1, B-2, B-3 and B-4 notes. The class B-5 notes were not rated.
According to the KBRA presale report, the weighted average credit score of the mortgage pool is 771, which is well within the prime mortgage range. The SEMT 2013-8 pool is also notable for significantly higher loan seller and geographic diversity than prior KBRA-rated SEMT transactions.
Moody’s Investor Service assigned triple-A rating to the class A notes. The ratings agency will not rate the class B tranches.
According to Moody’s presale report, transaction has 7%-11% more loans in the 75%-80% LTV bucket than in the Sequoia Mortgage Trust 2013-6 and 2013-4, the last two Sequoia transactions the ratings agency rated.
The issuer was last in the market with its Sequoia Mortgage Trust 2013-7 RMBS on May 13.