A lull in the new issuance of residential mortgage-backed securities is being broken by a prime jumbo deal.
The last time that Redwood Residential Acquisition Corp. issued a new RMBS deal was in November with Sequoia Mortgage Trust 2013-12.
That deal included 410 first lien residential loans that, at the time, had an aggregate principal balance of $325 million.
Sequoia Mortgage Trust 2014-1 is the first deal being issued by Redwood Trust this year.
The RMBS has been rated by Kroll Bond Rating Agency.
The transaction includes 429 first mortgages for $325 million.
The weighted-average loan-to-value ratio is 68 percent, as is the combined LTV. The weighted average credit score is 762.
The loans are divided into two groups, one with 15-year mortgages and hybrid adjustable-rate mortgages, and the second with 30-year fixed rate loans. Thirteen of the loans are interest-only.
Kroll noted that the issuance is the first SEMT transaction to have two loan groups and to include hybrid ARMs since Sequoia’s first deal in 2013 (there were 12 SEMT issuances last year).
