Kroll Bond Rating Agency Assigns Preliminary Ratings to Sequoia Mortgage Trust 2013-10

Business Wire


Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to sixteen classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2013-10, a jumbo prime RMBS transaction.

The mortgage pool backing SEMT 2013-10 is comprised of 529 first-lien mortgage loans with an aggregate principal balance of $400,671,654 as of the cut-off date. The loans in the pool are nearly all 30-year fixed-rate mortgages, with two being 20-year fixed-rate mortgages. There are no interest-only loans in the pool. The pool is characterized by substantial borrower equity in each mortgaged property, as evidenced by the weighted average LTV (67%) and CLTV (68%). The weighted average credit score of the mortgage pool is 775, which is well within the prime mortgage range. The SEMT 2013-10 pool is also notable for significantly higher loan seller diversity than prior KBRA-rated SEMT transactions.

KBRA’s analysis of the transaction included a loan-level analysis of the mortgage pools using our Residential Mortgage Default and Loss Model, together with a review of the key transaction parties, results of loan file reviews performed by independent third party firms and review of the legal structure and key documentation. This analysis is further described in our U.S. RMBS Rating Methodology.

For complete details on the analysis, please see our Pre-Sale Report, Sequoia Mortgage Trust 2013-10, which was published on July 23rd 2013 at

Sequoia Mortgage Trust 2013-10 Preliminary Ratings

Class       Rating       Class Principal
A-1       AAA(sf)       371,622,000
A-2       AAA(sf)       185,811,000
A-3       AAA(sf)       185,811,000
A-4       AAA(sf)       185,811,000
A-5       AAA(sf)       185,811,000
A-6       AAA(sf)       185,811,000
A-7       AAA(sf)       185,811,000
A-8       AAA(sf)       371,622,000
A-IO1       AAA(sf)       185,811,000*
A-IO2       AAA(sf)       185,811,000*
A-IO3       AAA(sf)       185,811,000*
A-IO       AAA(sf)       371,622,000*
B-1       AA(sf)       10,217,000
B-2       A(sf)       6,811,000
B-3       BBB(sf)       4,608,000
B-4       BB(sf)       3,205,000
B-5       NR       4,208,564

*Notional Amount

Related publications:

U.S. RMBS Rating Methodology, published January 9, 2012

Residential Mortgage Default and Loss Model, published January 9, 2012

About Kroll Bond Rating Agency

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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