Winwater Home Mortgage a conduit formed in 2013, is planning its second $276.9 million residential mortgage securitization, according to a presale report published by Kroll Bond Rating Agency.

Kroll has assigned an 'AAA' rating to $250 million of securiies to be issued by the deal, WinWater Mortgage Tust 2014-2.

Credit Suisse Securities, Wells Fargo Securities and Merrill Lynch, Pierce, Fenner & Smith are the original purchasers.

WIN 2014-2 is backed by 374 fixed rate loans that pay interest and principal over their 30-year terms. The credit quality of borrowers is strong; they have a weighted average FICO score of 767. And these borrowers have substantial equity in their properties, 28.5% on average.

However, roughly a third of the borrowers own additional mortgaged properties and their combined loan to value ratios (CLTVs) is 80%, which is among the highest concentration in pools that KBRA has rated.

By comparison, in Winwater’s inaugural deal, completed in June, 52.7% of the mortgages had a CLTV of 75% or greater but none have a CLTV exceeding 80%.  

Also, the loans in the pool are also concentrated in the state of California, which represents 63.2% of the total.

Among other risks cited by KBRA, there are multiple loan originators with limited performance history of underwriting jumbo mortgages and some lack sufficient financial resources to repurchase mortgages if there was a breach of representations and warranties.

Kroll has assigned an ‘AAA; rating to the senior tranches of the deal.

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