WinWater Residential Acquisition Corp is back with a third securitization backed by residential mortgage loans.
DBRS expects to assign AAA’ ratings to the class A notes, AA’ ratings to the class B1 notes, A’ ratings to the class B2 notes, BBB’ ratings to he class B3 notes and BB’ ratings to the class B4 notes.
WinWater is a relatively new issuer of RMBS. The company was formed in July 2013 and began acquiring mortgage loans through various aggregating trusts in December 2013. The issuer launched its inaugural RMBS in June 2014. It does not have a loan origination arm.
All 356 loans included in the issuer’s latest deal were acquired from a number of lenders. Lenders contributing more than five percent of the pool include Prospect Mortgage, which originated 11.2% of the loans, Ditech Corp originated 10% of the loans, Skyline Financial originated 6.2% of the loans and Parkside Lending originated 6% of the loans.
The pool contains no interest only loans and sticks to high quality borrowers with a weighted average FICO of 764 and a weighted averge loan-to-value of 71.7%, similar to the issuer’s previous two deals to come to market in 2014.
Of the loans that are subject to the Qualified Mortgage and Ability to repay rules, which represent 92% of the pool, all qualify as Safe Harbor. This mitigates future litigation risk and provides a level of assurance that these loans are better insulated from claims and defenses by borrowers.