WinWater Home Mortgage is preparing its fourth residential mortgage securitization this year, following deals in March, February, and January.
This puts the loan aggregator
On the other hand, the most recent deal exceeds any of the previous transactions this year by at least $100 million.
The $405-million WinWater Mortgage Loan Trust 2015-4 is backed by 544 prime, fully amortizing, 30-year, fixed-rate mortgages, according to a presale by Kroll Bond Rating Agency.
The top originators in the underlying pool are Caliber Home Loans, Stonegate Mortgage, and Ditech Mortgage.
All of the loans are serviced by Cenlar.
Kroll has assigned a preliminary AAA’ rating to the majority of the senior tranches of the deal, with just a few not rated by the agency. Only one of the subordinate tranches received a below investment-grade BB’ rating.
The loans in the pool have a weighted average loan-to-value ratio of 67.3%, which Kroll said provides a margin of safety against potential declines in home prices. Borrowers have a weighted average (WA) FICO score of 770, WA annual income of $392,624 and liquid reserves of $488,398, indicating strong credit in the pool.
Similar to the previous deals of the year, WIN 2015-4 is graphically concentrated in areas with high housing prices. Nearly half of the properties in the latest deal (49.4%) are located in California, followed by 6.3% in Colorado and 5.4% in Washington, according to Kroll. The average loan balance of the pool is $744,496.
In the presale report, Kroll also said that “compared to other portfolios of prime jumbo mortgages reviewed by KBRA, WIN 2015-4 has few large loans, as the largest loan has an unpaid principal balance of $3.96 million and four loans have an outstanding balance greater than $2 million.” This decreases risk as the pool has a larger diversity of borrowers.
