Kroll Bond Rating Agency Assigns Preliminary Ratings to Sequoia Mortgage Trust 2012-4 Certificates

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2012-4, a jumbo prime RMBS transaction.

The mortgage pool backing SEMT 2012-4 is comprised of all first-lien mortgage loans with an aggregate principal balance of $313,222,403 as of the cut-off date. All of the loans in the pool are fixed rate (predominantly 30-year) mortgage loans for which income and assets were fully documented. The collateral pool consists of high quality mortgage loans. Most notably, the 66.4% first-lien loan-to-value (LTV), and the 67.6% combined first and junior lien LTV (CLTV), provide a substantial margin of safety against potential home price decline.

KBRA’s analysis of the transaction includes a loan-level analysis of the mortgage pools using our Residential Mortgage Default and Loss Model, together with a review of the transaction parties, results of loan file reviews performed by independent third party firms and review of the legal structure and key documentation. This analysis is further described in our U.S. RMBS Rating Methodology.

For complete details on the analysis, please see our Pre-Sale Report, Sequoia Mortgage Trust 2012-4 which was published today at www.krollbondratings.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: SEMT 2012-4
Class	Rating	Expected Initial Class Principal
A-1	AAA(sf)	$100,000,000
A-2	AAA(sf)	$100,000,000
A-3	AAA(sf)	$90,357,000
A-IO	AAA(sf)	$290,357,000*
A-IO2	AAA (sf)	$100,000,000*
A-IO3	AAA (sf)	$90,357,000*
* Notional Balance

17g-7 Disclosure:

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report: SEMT 2012-4 17g-7 Disclosure report.

Related publications:

U.S. RMBS Rating Methodology, published January 9, 2012

Residential Mortgage Default and Loss Model, published January 9, 2012

About Kroll Bond Rating Agency

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).