Moody's Investors Service views Redwood Trust (RWT) sixth residential mortgage-backed securities transaction of the year as a deal backed by high-quality, fixed-rate mortgages.
Moody's review of the Sequoia Mortgage Trust 2012-6 shows the transaction – which is expected to close in the fourth quarter – as being investment grade and supported by borrowers with high credit scores and low default risk. Fitch issued its review of the same RMBS deal yesterday.
"The performance of Sequoia’s post-crisis deals has been very strong to date, with no loan becoming 60-plus delinquent since the closing date," Moody's said in its report.
Moody's added that 98.4% of the loans in the pool are fixed-rate, fully amortizing mortgages.
Click to see the breakdown of ratings from Moody's: