KBRA Assigns Preliminary Ratings to Sequoia Mortgage Trust 2020-MC1 (SEMT 2020-MC1)

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2020-MC1 (SEMT 2020-MC1). SEMT 2020-MC1 is an RWT Holdings, Inc. (Redwood) sponsored residential mortgage-backed securities (RMBS) 2.0 issuance, which includes a significant concentration of collateral that KBRA considers to be “expanded prime.”

Sequoia Mortgage Trust 2020-MC1 (SEMT 2020-MC1) is a $274.0 million RMBS transaction collateralized by a pool of 368 residential mortgages containing highly seasoned collateral pool with loans originated between 2009 and 2020. The pool comprises 200 seasoned portfolio loans (~53.7%) and 168 loans originated within last 24 months (~46.3%). In addition, the portfolio loans were originated under various expanded credit and traditional prime and super-prime programs offered by Redwood Trust such as Choice, Select, and certain other underwriting guidelines.

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.

Click here to view the report. To access ratings and relevant documents, click here.

Related Publications


Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the U.S. Information Disclosure Form located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.


Analytical Contacts

Armine Karajyan, Associate Director (Lead Analyst)

+1 (646) 731-1210


Fei Han, Associate

+1 (646) 731-2342


Patrick Gervais, Managing Director

+1 (646) 731-2426


Jack Kahan, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2486


Business Development Contact

Michele Patterson, Managing Director

+1 (646) 731-2397


error: Content is protected !!