Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to
fifty-three classes of mortgage pass-through certificates from Sequoia
Mortgage Trust 2018-7 (SEMT 2018-7), a prime RMBS transaction. SEMT
2018-7 contains both prime jumbo (67.2%) and high-balance conforming
(32.8%) collateral to borrowers with prime attributes.
The SEMT 2018-7 mortgage pool is composed of 497 first-lien mortgage
loans with an aggregate principal balance of $329,694,540 as of the
cut-off date. The underlying collateral consists entirely of
fully-amortizing, fixed-rate mortgages. The pool is characterized by
substantial borrower equity in each mortgaged property, as evidenced by
the WA original LTV of 65.4% and WA original CLTV of 65.8%. The weighted
average original credit score is 774, which is within the prime mortgage
KBRA’s rating approach incorporated loan-level analysis of the mortgage
pool through its Residential Mortgage Default and Loss Model, an
examination of the results from third-party loan file due diligence,
cash flow modeling analysis of the transaction’s payment structure,
reviews of key transaction parties and an assessment of the
transaction’s legal structure and 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 2018-7, which was published on August 1, 2018 on www.kbra.com.
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required,
pursuant to SEC Rule 17g-7, to provide a description of a transaction’s
representations, warranties and enforcement mechanisms that are
available to investors when issuing credit ratings. KBRA’s disclosure
for this transaction can be found in the report available here.
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KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
recognized by the National Association of Insurance Commissioners as a
Credit Rating Provider and a certified Credit Rating Agency (CRA) by the
European Securities and Markets Authority (ESMA). Kroll Bond Rating
Agency Europe Limited is registered with ESMA as a CRA.
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