Credit Suisse brings another jumbo RMBS to market

2nd this year, 5th since housing recovery began

Credit ratings agency DBRS assigned mostly triple-A to a prime, jumbo residential mortgage backed securitization issued by Credit Suisse (CS). The trust is called CSMC Trust 2014-IVR2. The triple-A credit enhancement is 7.2%.

This is the second RMBS brought to market by CS this year and the fifth since the housing recovery began.

The deal is backed by 364 loans with a total principal balance of $277.73 million.

Prospect Mortgage and Prospect Lending, LLC originated 20.4% of the loans in the RMBS. Other large originators were New Penn Financial, which originated 25.5% of the loans and Quicken Loans, Inc., which originated 15.5% of the loans.

Select Portfolio Servicing will service the vast majority of the loans. SPS will service 89.3% of the loans. The remaining loans will be serviced by Shellpoint Mortgage Servicing (8.7%) and PHH Mortgage Corporation (2%).

Wells Fargo (WFC) will act as the master servicer and securities administrator and Deutsche Bank National Trust Company will act as custodian.

“The transaction employs a senior-subordinate shifting-interest cash flow structure that is enhanced from a pre-crisis structure,” DBRS says in its presale report.

DBRS reports that the strengths of the RMBS come from high quality credit attributes and well-qualified borrowers. “This transaction exhibits high-quality credit attributes such as low loan-to-value ratios and strong borrower credit, and substantially all loans are full documentation,” the report says.

The loans are also all current.

DBRS cites the relative youth of New Penn and Shellpoint, which only has six years of operating history, as a challenge of the RMBS. “New Penn/Shellpoint is a relatively new originator and securitizer of prime jumbo loans and, as a result, has limited performance history on these loans,” the report says.

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