WinWater Home Mortgage is back with its largest ever securitization of residential mortgage loans.

The sponsor plans to sell $453.7 million of securities via WinWater Loan Trust 2015-5. The transaction is the fifth of the year. WinWater, which was formed last year by certain principals of hedge fund Premium Point Investments, last came to market with WinWater 2015-4 in June.    

Moody's Investor's Service and DBRS assigned triple-A ratings to the senior notes on offer.   

The collateral pool backing WinWater 2015-5 has all of the hallmarks of the sponsors previous transactions: low loan-to-value ratios, strong borrower credit and full documentation on substantially all loans. The pool consists entirely of 30-year, fixed-rate loans, with a weighted average LTV of 69.15% with a WA FICO of 773.9. The loans have a weighted average remaining term of 29.5 years.

The pool is comprised of a relatively small number of loans (556) that have high principal balances, which exposes the transaction to the risk of losses at the tail of the transaction, when few loans remain. "At that time, a default of a large loan would significantly reduce enhancement and result in losses to the bonds," Moody's stated in its presale report.

All but one of the loans that are subject to ability-to-repay rules benefit from a legal safe harbor.

The top originators in the underlying pool are Stonegate Mortgage, Ditech Mortgage and  Prospect Mortgage.

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