Redwood Trust is rolling out its seventh jumbo mortgage securitization of the year, according to a presale report published by Kroll Bond Rating Agency.
The mortgage pool backing SEMT 2013-7 is comprised of 595 first-lien mortgage loans with an aggregate principal balance of $453,588,656.
This latest deal shares a number of characteristics with the 13 previous SEMT securitizations Kroll has rated in 2012 and 2013, including combined loan-to-value ratios in the 65% - 69% range and average borrower FICO scores in the 765-775 range. Also, the vast majority of borrowers in the latest deal, 96%, are residents of the mortgaged properties, and income is well-documented for all borrowers.
And as with Redwood’s two previous deals, the loans used as collateral have been purchased from a wider range of sellers. “While this seller diversity helps reduce geographic concentration, it also increases exposure to the underwriting standards and processes of new sellers that lack significant jumbo mortgage loan performance history,” Kroll noted in its presale report. “ In addition, some of the sellers may lack sufficient financial resources to fulfill their repurchase obligations if they were to breach a loan representation or warranty.”
Redwood Trust has issued a total of $3.125 billion via its first six jumbo mortgage securitizations of the year. The real estate investment trust has said it plans to bring as much as $7 billion to market this year.