Redwood Trust issued its ninth jumbo residental mortgage-backed securitization from its Sequoia trust of the year, worth $431.157 million.
The deal was assigned ratings from Standard and Poor's and Kroll Bond Rating Agency (KBRA). Six tranches totalling $426.619 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 $4.538 A-P certificates were rated "AAA' and 'AA' by S&P and KBRA, respectively.
None of the six subordinated tranches totalling $32.453 million were rated by S&P; they were rated 'AA', 'A', 'BBB', 'BB', and not rated, respectively, by KBRA.
The notes are backed by 606 30-year, fixed rate prime jumbo mortgages with an aggregate principal value of $463,610,260 million, according to KBRA's new issue report.
The 68% first-lien loan-to-value (LTV), and the 68% combined first- and junior-lien LTV (CLTV), provide a substantial margin of safety against potential home price declines, the report said. The top of orginations 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 SMET 2013-7 transaction.