DBRS Assigns Provisional Ratings to EverBank Mortgage Loan Trust 2013-2 Mortgage Pass-Through Certificates, Series 2013-2

DBRS, Inc. (DBRS) has assigned the following provisional ratings to the Mortgage Pass-Through Certificates, Series 2013-2 issued by EverBank Mortgage Loan Trust 2013-2 (the Trust).

-- $ 278.9 million Class A rated at AAA (sf)
-- $ 278.9 million Class A-IO* rated at AAA (sf)

• Denotes interest only class. The class balance represents a notional amount.

The AAA (sf) ratings on the Certificates reflect the 8.05% of credit enhancement provided by subordination. Other than the specified classes above, DBRS does not rate any other classes in this transaction.

The Certificates are backed by 367 loans with a total principal balance of $303,295,159 as of the Cut-off Date. EverBank is the originator and servicer for all the loans. Wells Fargo Bank, N.A. will serve as Master Servicer and Securities Administrator, and Christiana Trust, a division of Wilmington Savings Fund Society, FSB will serve as Trustee.

The ratings reflect transactional strengths that include high quality underlying assets, well qualified borrowers, satisfactory third-party due diligence review and traditional life-time representations and warranties.

Although the transaction employs a strong representations and warranties framework which includes automatic review for seriously delinquent loans, mandatory arbitration and no sunset provisions, the limited securitization history and the relatively weak financial strength of the originator still demand additional penalties and credit enhancement protections. To capture the perceived weaknesses, DBRS adjusted downward the origination score of EverBank to account for its potential inability to fulfill repurchase obligations. Such adjustment resulted in increases in default and loss assumptions for the transaction.

Note:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are:
• RMBS Insight: U.S. Residential Mortgage-Backed Securities Loss Model and Rating Methodology
• Unified Interest Rate Model for U.S. RMBS Transactions
• Third-Party Due Diligence Criteria for U.S. RMBS Transactions
• Representations and Warranties Criteria for U.S. RMBS Transactions
• Legal Criteria for U.S. Structured Finance Transactions

The full report providing additional analytical detail is available by clicking on the link below or by contacting us at info@dbrs.com.

The Rule 17g-7 Report of Representations and Warranties is hereby incorporated by reference and can be found by clicking on the link or by contacting us at info@dbrs.com.

These ratings are endorsed by DBRS Ratings Limited for use in the European Union.