Redwood Trust filed a registration statement with the Securities and Exchange Commission to issue its first mortgage backed securities transaction for 2013 under its Sequoia series of deals.
The filing states that the issuer entered into an arrangement with Barclays Capital on Nov. 28, where the bank is named as an underwriter on the deal, Sequoia Mortgage Trust 2013-1. Barclays was contacted but would not comment on the deal.
Redwood recently completed its Sequoia Mortgage Trust 2012-6 according to one market source. SEMT 2012-6 is Redwood 's sixth transaction of prime residential mortgages in 2012. The mortgage pool backing the deal is made up of 358 first-lien mortgage loans with an aggregate principal balance of $301.46 million, according to a Kroll Bond Rating Agency (KBRA) presale report on the transaction. The loans included in the pool are mostly 30-year fixed-rate mortgages, except for 2.02% that are 20-year loans.
Although agency issuance continues to dominate the market, Redwood Trust has remained the only regular non-agency RMBS issue since 2010. Springleaf Financial has been another significant issuer this year, completing three RMBS deals that securitized seasoned mortgage loans, often from earlier securitizations.
According to Standard & Poor’s, year-to-date, total private-label RMBS issuance is near $6bn this year, compared with $2.8bn for all of 2011. The rating agency said it expects a moderate increase to $15bn next year.