Credit Suisse brings fourth jumbo RMBS to market | 2014-01-31 | HousingWire

Investments

81% of loans come from Shellpoint’s New Penn

Credit ratings agency DBRS assigned mostly triple-A to a prime, jumbo residential mortgage backed securitization issued by Credit Suisse [CS]. The trust is called CSMC Trust 2014-IVR1. The triple-A credit enhancement is 6.85%.

This is the fourth deal issued by CS since the housing recovery began.

The deal is backed by 398 prime residential mortgage loans with a total principal balance of $287 billion.

The originators for the mortgage pool are primarily New Penn Financial at nearly 81%.

The loans will be serviced by Select Portfolio Servicing.

Wells Fargo [WFC] will act as the master servicer.

DBRS notes the deal bears some semblance to pre-crisis jumbo RMBS.

The representations and warranties are backstopped by a wholly owned subsidiary of Credit Suisse.

“DBRS views the representation and warranties features for this transaction to be consistent with recent DBRS-rated CSMC prime jumbo transactions, and of stronger quality than that of two previous Credit Suisse prime jumbo transactions (CSMC 2012-CIM3 & CSMC 2013-TH1),” said DBRS in its presale report.

“However, the relatively weak financial strength of certain originators coupled with the sunset provisions on the backstop by DLJMC still demand additional penalties and credit enhancement protections,” DBRS warned.

Jacob Gaffney
Jacob_gaffney
Jacob Gaffney is the Executive Editor of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s). At HousingWire, he began focusing his journalism on all aspects of the housing and mortgage markets.

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