KBRA Assigns Preliminary Ratings to Sequoia Mortgage Trust 2020-2 (SEMT 2020-2)

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 55 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2020-2 (SEMT 2020-2), a prime RMBS transaction. SEMT 2020-2 contains both non-conforming (90.2%) and conforming (9.8%) collateral to borrowers with prime attributes.

The SEMT 2020-2 mortgage pool is composed of 656 first-lien mortgage loans with an aggregate principal balance of $501,164,975 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 69.0% and WA original CLTV of 69.4%. The weighted average original credit score is 766, which is within the prime mortgage range.

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.

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)



About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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) by 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

(646) 731-1210


Rebecca Lindenblatt, Analyst

(646) 731-2421


Jack Kahan, Senior Managing Director

(646) 731-2486


Business Development Contact:
Michele Patterson, Managing Director

(646) 731-2397


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