WinWater Home Mortgage is preparing another plain vanilla private label residential mortgage securitization.

The $283.8 million WinWater Mortgage Loan Trust 2015-1 is backed entirely full amortizing, 30-year, fixed-rate mortgages, according to a presale report published by Kroll Bond Rating Agency. The three biggest originators are Prospect Mortgage, Ditech Mortgage and Skyline Financial.

All of the loans are serviced by Cenlar.

Kroll has assigned a preliminary ‘AAA’ rating to the senior tranches of the deal.

The borrowers have significant equity in their properties; the loans in the pool have a weighted average loan-to-value ratio of 70.1%, which Kroll said provides a margin of safety against potential declines in home prices.  Borrowers in the pool also have strong credit, with a weighted average FICO score of 766 at the time of origination and large amounts of liquid reserves.

Like many private label deals, WIN 2015-1 is geographically concentrated in states where home prices are high; however Kroll considers the deal’s highest concentration, in California, to be “relatively moderate” at 47.3%.

Approximately 94% of the loans, or 370, qualify for safe harbor status under new ability-to-repay rules, and so are at reduced risk of litigation should they go bad. The remaining 19 loans are not subject to ability-to-repay rules, either because they have application dates prior to January 2014 or because they were used to finance the purchase of investment properties.

To date, just one firm, Redwood Trust, has securitized nonqualified mortgages, and only in deals where these loans represented a small percentage of the overall collateral. 

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