Fitch Ratings said it expects to rate the latest residential mortgage-backed certificates to be issued by Sequoia Mortgage Trust 2011-2. Redwood Trust (RWT), the only company to launch private-label residential mortgage securitizations since the financial crisis began in 2008, is issuing the RMBS. Redwood will bond 473 loans with a total balance of approximately $375 million. All the loans are prime fixed-rate mortgages originated by six originators. The deal is broken down with 53% of the mortgages originated by First Republic Bank. PHH Mortgage Corp. (PHH) makes up another 27%. The rest of the pool was originated by Wells Fargo Home Mortgage (8%) (WFC), SunTrust Mortgage (7%), PrimeLending (4%), and Sterling Savings Bank (1%). Distributions of principal and interest and loss allocations are based on a traditional senior-subordinate shifting-interest structure. Click chart below for breakdown: Redwood Trust successfully closed an earlier $290 million prime jumbo residential mortgage loan securitization, the only private deal of its kind, earlier this year. Further, a new RMBS from Redwood has been in the works for months. The firm said it intends to issue nearly $1 billion in private RMBS. Two Harbors Investment said in May it was partnering with Barclays Capital (BCS) to issue an RMBS worth $250 million. The two firms closed a $100 million mortgage warehouse facility that month to gather prime jumbo loans from select originators. Write to Jacob Gaffney. Follow him on Twitter @jacobgaffney.
Redwood lines up another jumbo RMBS
Most Popular Articles
Latest Articles
Indiana senator explains his inquiries into reverse mortgages
Sen. Mike Braun offered insights into his recent letter to Ginnie Mae and the potential need for more scrutiny of the HECM and HMBS programs.