Press Release|RMBS
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KBRA Assigns Rating to Sequoia Mortgage Trust 2026-CD8 (SEMT 2026-CD8)

27 Oct 2026   |   New York

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KBRA assigns the rating of BBB-(sf) to the Class A Certificate from Sequoia Mortgage Trust 2026-CD8 (SEMT 2026-CD8), a prime RMBS transaction. The rating was initially assigned on October 23, 2026, on an unpublished basis, and since that time has remained stable and has not changed.

Sequoia Mortgage Trust 2026-CD8 (SEMT 2026-CD8) is backed by loans originated pursuant to Physician or Doctor Loan underwriting programs. These loans, which KBRA generally refers to as Medical Professional Mortgages (MPM), typically originated through specialized prime mortgage programs designed for borrowers in the healthcare field whose earnings potential and income stability are high but where personal debt (typically student loan driven) is high and early career earnings and savings/down payment levels are low. The underlying collateral consists of a static pool of residential mortgage loans with an aggregate scheduled principal balance of approximately $465.1 million as of the cut-off date. The pool consists of fully amortizing fixed rate mortgages with mostly 30-year maturity terms originated under the general QM designation.

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM), 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 and relevant documents, click here.

Click here to view the report.

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Methodologies

Disclosures

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 Information Disclosure Form(s) 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 Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the US Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. Kroll Bond Rating Agency Japan K.K. is registered as a CRA with the Japan Financial Services Agency. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1017748