DBRS, Inc. (DBRS) has today assigned the following ratings to the Mortgage Pass-Through Certificates, Series 2013-IVR5 issued by CSMC Trust 2013-IVR5 (the Trust).

-- $255.1 million Class A-1# rated at AAA (sf)
-- $22.4 million Class A-2 rated at AAA (sf)
-- $255.1 million Class A-X-1* rated at AAA (sf)
-- $22.4 million Class A-X-2* rated at AAA (sf)
-- $255.1 million Class A-X-3* rated at AAA (sf)
-- $22.4 million Class A-X-4* rated at AAA (sf)
-- $255.1 million Class A-X-5ᵉ rated at AAA (sf) -- $255.1 million Class A-3#ᵉ rated at AAA (sf) -- $255.1 million Class A-6#ᵉ rated at AAA (sf) -- $277.4 million Class A-5ᵉ rated at AAA (sf) -- $277.4 million Class A-X-6ᵉ rated at AAA (sf)
-- $277.4 million Class A-4ᵉ rated at AAA (sf)
-- $277.4 million Class A-X-7ᵉ rated at AAA (sf) -- $277.4 million Class A-7ᵉ rated at AAA (sf) -- $22.4 million Class A-X-8ᵉ rated at AAA (sf)
-- $22.4 million Class A-9ᵉ rated at AAA (sf)
-- $22.4 million Class A-8ᵉ rated at AAA (sf)
-- $194.2 million Class A-10ᵉ rated at AAA (sf)
-- $83.2 million Class A-11ᵉ rated at AAA (sf)
-- $194.2 million Class A-12ᵉ rated at AAA (sf)
-- $83.2 million Class A-13ᵉ rated at AAA (sf)
-- $277.4 million Class A-X-9*ᵉ rated at AAA (sf)
-- $4.4 million Class B-1 rated at AA (sf)
-- $3.9 million Class B-2 rated at A (sf)
-- $5.3 million Class B-3 rated at BBB (sf)
-- $4.2 million Class B-4 rated at BB (sf)

denotes super senior class. This class benefits from additional protection from the senior support bond (i.e. Class A-2) with respect to loss allocation.

• denotes interest-only certificates. The class balances represent notional amounts.

ᵉ denotes exchangeable certificates. These certificates can be exchanged for combinations of initial exchangeable certificates as specified in offering documents.

The AAA (sf) ratings in this transaction reflect the 7.55% of credit enhancement provided by subordination. The AA (sf), A (sf), BBB (sf) and BB (sf) ratings reflect 6.10%, 4.80%, 3.05% and 1.65% of credit enhancement, respectively. Other than the specified classes above, DBRS does not rate any other classes in this transaction.

The Certificates are backed by 398 prime residential mortgage loans with a total principal balance of $301,903,286 as of the Cut-off Date (November 1, 2013). The mortgage loans were acquired by DLJ Mortgage Capital, Inc. (“DLJMC”). The originators for the mortgage pool are Guaranteed Rate, Inc. (9.3%), BofI Federal Bank (8.3%), Sierra Pacific Mortgage Company, Inc. (8.3%), RPM Mortgage, Inc. (8.0%), Cole Taylor Bank (5.7%), Skyline Financial Corp. (5.0%), and various others originators (55.3%).

The loans will be serviced by Select Portfolio Servicing Inc. (99.6%), PHH Mortgage Corporation (0.2%) and First Republic Bank (0.2%). Wells Fargo Bank, N.A. (“Wells Fargo”) will act as the Master Servicer and Securities Administrator. Christiana Trust, a division of Wilmington Savings Fund Society, FSB will serve as trustee. The transaction employs a senior-subordinate shifting-interest cash flow structure that is enhanced from a pre-crisis structure.

The originators provide traditional life-time representations and warranties to the Trust. The enforcement mechanism for breaches of representations includes automatic breach reviews by a third-party reviewer for any seriously delinquent loans and resolution of disputes are ultimately subject to determination in arbitration proceeding. The loans (except for First Republic-originated loans) also benefit from representations and warranties back-stopped by the seller, DLJMC, a wholly owned subsidiary of Credit Suisse (USA), Inc., in the event of an originator’s bankruptcy or insolvency proceeding and if the originator fails to cure, repurchase or substitute such breach or loans. However, such a backstop is subject to certain sunset provisions that give consideration to prior loan performance.

DBRS views the representation and warranties features for this transaction to be consistent with CSMC 2013-7, and of stronger quality than that of two previous Credit Suisse prime jumbo transactions (CSMC 2012-CIM3 & CSMC 2013-TH1). 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. The full description of the representations and warranties standard, the mitigating factors and the DBRS analysis are detailed in the related rating report.

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.