The one company to consistently aggregate jumbo loans for securitizations since the downturn has received an originator assessment from Moody’s Investors Service that finds it is “above average.”
The report on Redwood Residential Acquisition Corp. as an aggregator of prime jumbo residential mortgages is the seventh originator assessment the ratings agency has done in the United States since it began providing them in February 2011.
The assessments generally use a five-category scale to rank originators and “above average” is Moody’s second-highest rank.
The ratings agency said it adjusted its typical originator assessment to put more weight on third-party originator management, for example, in order to account for the fact that Redwood it is strictly an aggregator and does not manufacture individual residential mortgages.
In a summary of components that factor into the overall ranking, Moody’s said Redwood’s aggregator loan performance has the highest rank possible (strong) and has a 40% weighting. Its aggregator ability and aggregator stability respectively have a 40% and 20% weighting and are considered above average.