NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns final ratings to six classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2012-4, a jumbo prime RMBS transaction. Concurrently we have withdrawn our preliminary ratings on the certificates, which were assigned on September 10, 2012.
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 included 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.
Final Ratings Assigned: SEMT 2012-4
|Class||Rating||Expected Initial Class Principal|
* Notional Balance
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).