EverBank’s  planned  $308 million residential mortgage-backed securitization may offer investors access to a new issuer name; but the structuring stays in line with safe, prime quality deals that dominate post financial-crisis market issuance.

The deal, EverBank Mortgage Loan Trust 2013-1, will offer investors $283.2 million  of ‘AAA’, fixed rate notes that have been assigned preliminary ratings by both Fitch Ratings and DBRS -- $283.2 million Fitch has also rated the class B-1, B-2, B-3 and B-4 notes ‘AA’, ‘A’, ‘BBB’ and ‘BB’ respectively.

DBRS noted in its presale report today that the ratings reflect the 8.20% of credit enhancement provided by subordination. The pool consists mostly of prime 15-year and 30-year fixed-rate mortgages (FRMs) originated by EverBank.  

The ratings also reflect the prime quality of the underlying assets and the capabilities of EverBank as servicer on the entire mortgage pool.  The pool’s original weighted average (WA) combined loan-to value ratio is 68.09 and the weighted average FICO score is 774,according to the Fitch presale report.

Wells Fargo Bank will serve as master servicer and securities administrator, and Christiana Trust, a division of Wilmington Savings Fund Society will serve as trustee. The originator will provide traditional life-time representations and warranties to the Trust. Fitch said the mortgage loan representation and warranty framework is consistent with its criteria and viewed positively by the agency.

However Fitch said it adjusted its loss expectations to account for the possibility of slightly higher defaults and losses arising from EverBank’s inability to repurchase loans due to breaches. “EverBank does not meet the criteria financial condition threshold,” said the ratings agency. “The adjustment considered the 100% due diligence review, as well as the very high quality of the mortgage loans.”

 

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.