ADVERTISEMENT
Press release content from Business Wire. The AP news staff was not involved in its creation.
Related topics
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

KBRA Assigns Preliminary Ratings to Sequoia Mortgage Trust 2022-1 (SEMT 2022-1)

January 11, 2022 GMT

NEW YORK--(BUSINESS WIRE)--Jan 11, 2022--

KBRA assigns preliminary ratings to 55 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2022-1 (SEMT 2022-1), a prime RMBS transaction. SEMT 2022-1 contains 100% QM (Safe Harbor) non-conforming mortgage loans, with 1.2% of the pool originated to QM 1.0 and categorized as QM Safe Harbor, and approximately 98.8% of the loans were designated as QM Safe Harbor (APOR) under QM 2.0.

The SEMT 2022-1 mortgage pool is composed of 751 first-lien mortgage loans with an aggregate principal balance of approximately $687,192,486 as of the cut-off date. The underlying collateral consists entirely of fully-amortizing, fixed-rate mortgages. The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the WA original LTV and CLTV of 70.3%. The weighted average original credit score is 773, which is within the prime mortgage range.

ADVERTISEMENT

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its KBRA RMBS Credit Model, an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications

ADVERTISEMENT

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

View source version on businesswire.com:https://www.businesswire.com/news/home/20220111005819/en/

CONTACT: Analytical Contacts

Ryon Aguirre, Director (Lead Analyst)

+1 (646) 731-1239

ryon.aguirre@kbra.com

Jules Brunier, Senior Analyst

+1 (646) 731-1209

jules.brunier@kbra.com

Jack Kahan, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2486

jack.kahan@kbra.com

Business Development Contact

Dan Stallone, Director

+1 (646) 731-1308

daniel.stallone@kbra.com

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES INSURANCE FINANCE

SOURCE: Kroll Bond Rating Agency, LLC

Copyright Business Wire 2022.

PUB: 01/11/2022 09:56 AM/DISC: 01/11/2022 09:56 AM

http://www.businesswire.com/news/home/20220111005819/en