Mortgage REIT Redwood Trust is readying its sixth private-label securitization of residential mortgages (RMBS) this year, according to re-sale reports from Fitch Ratings and Kroll Bond Ratings.
RBS Securities is the arranger.
Sequoia Mortgage Trust 2013-6 — as the deal is known — consists of several tranches totaling $425 million. Two senior slices for $198.7 million apiece are rated triple A by both Fitch and Kroll.
The average loan balance in the pool is $779,755 and weighted average LTV is 64.6%. The borrowers behind the loans are prime, with a weighted average FICO score are 771, Redwood holds on to the subordinate tranches in the deal, an insurance for investors of the senior pieces.
Wells Fargo is the master servicer on the deal, while Cenlar FSB is the primary servicer. On the downside, there is a significant concentration of loans in California. In addition, the rise in geographic breadth is accomplished through the inclusion of new sellers with less experience than writing jumbo mortgage loans.
Among the largest originators of the 2013-6 deal is Shore Financial Services, with a 7.69% share; Cole Taylor Bank (7.6%); Prime Lending (6.67%); and WJ Bradley (5.24%).
