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June 9 (The following statement was released by the rating agency)
The highest delinquency to date of any post-crisis U.S. RMBS pool emerged last month due to a transfer of servicing and does not point to more widespread post-crisis late-pay increases, according to Fitch Ratings in its latest monthly prime jumbo trends report.
Sequoia 2014-1 reported 3.37% of borrowers were behind on their payment. All of the delinquent mortgage loans in Sequoia 2014-1 had been recently transferred to Cenlar FSB. Fitch Ratings has spoken with the issuer about the transfer.
'Early delinquency related to servicing transfers in recent RMBS is typically due to the borrower mailing the payment to the wrong address and generally doesn't result in longer term payment issues,' said Managing Director Grant Bailey. In fact, only one borrower became 60+ days delinquent of the 121 borrowers in recent RMBS pools that were delinquent in the first three months. One serious delinquency unrelated to a servicing transfer also emerged last month in RMBS deals originated post-crisis (CSMC 2013-7; not rated by Fitch). The mortgage borrower in question has a 756 FICO and a 57% loan-to-value. 'Of the 17 borrowers in recent RMBS pools that went over 60+ days delinquent, only one did not subsequently cure,' said Bailey.
Prepayment rates also rose to double-digits for nine recent mortgage pools, reflecting mortgage rates that fell to their lowest levels since last year. Overall constant payment rates across all vintages remain near historical lows (6%).
'U.S. Prime Jumbo RMBS Trends' is available at www.fitchratings.com or by clicking on the above link.
Link to Fitch Ratings' Report: U.S. Prime Jumbo RMBS Trends