Redwood Trust (RWT) is bringing a $293.5 million residential mortgage backed securitization to the private-label market.
Kroll Bond Rating Agency and Fitch Ratings provided pre-sale reports on the deal, the third in the annual series, Sequoia Mortgage Trust 2012-3.
The collateral is made up of jumbo loans to borrowers with high credit ratings. The 31 first-lien mortgages carry an aggregate principal balance of $293,590,499.
The mortgage lenders and servicers are First Republic Bank, PrimeLending, United Shore Financial, Flagstar Bank and PHH Mortgage.
According to Kroll, there is heavy borrower equity in each mortgaged property. No loan has an loan to value greater than 80%. The average LTV is closer to 67%.
Fitch Ratings added that third-party loan-level due diligence was conducted on approximately 79% of the overall pool. Fitch believes "the results of the review generally indicate strong underwriting controls."
See rating chart below from Fitch.