Redwood Trust has a lot to be proud of. The real estate investment trust is one of only a handful of issuers in the private-label residential mortgage-backed securities market and classes from a previous deal have no realized losses or short falls, indicating the RMBS bonds are successful.

The platform Sequoia Mortgage Trust 2012-2 has delivered primarily due to senior classes receiving 100% of unscheduled principal, while subordinate classes have pad down through “pro-rata payments” of scheduled principal, according to Kroll Bond Ratings. 

Additionally, the collateral make up of the deal has posted minimal changes since Redwood (RWT) closed the transaction. For instance, refinancings of higher balances as well as curtailment have reduced the average balance of the transaction from $896,000 to $864,000.

“Performance of SEMT 2012-2 has remained pristine as no loan has missed any payments since deal close. Conditional prepayment rates (CPRs) have remained high in the low rate environment,” the credit rating agency said.