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Precise Mortgage Funding 2017-1B: 27 April 2017

After an absence of 1½ years, Charter Court returns to the market with their seventh RMBS transaction, which is another stand-alone BTL RMBS deal. CCFS is both an originator and servicer of residential mortgage loans in the United Kingdom and is 100% owned by Charter Court Financial Services Group Limited, a private limited company established on 1 October 2008. It trades as Precise Mortgages in the UK market.

At the cut-off date (28 February 2017), the provisional portfolio consists of 1,940 first-ranking buy-to-let loans originated by the originator between August 2014 and February 2017 and secured over properties located in England, Wales and/or Scotland. The average account balance is £249,754 and there are 97 loans of £600,000 or greater in the pool (accounting for 15.64% of current balances).

Pool characteristics (by current balances): BTL 64.18%, Owner occupied 35.82%. Self-employed borrowers account for 42.10% of the pool and first time buyers for 10.52%. Loan purpose: Refinancing 50.86%, Home purchase 49.14%. Product type (by current balance): Floating Rate Loan linked to LIBOR 57.03%, Fixed Rate Loan reverting to BBA LIBOR 42.97%. Redemption type: Interest-only 95.41%, Re-payment Loans 4.59%. The WA current LTV is 72.08% (original LTV was 72.03%) and the WA seasoning is 5.45mnths. Regional concentration (by current balance): South East including London 65.22%, East Anglia 12.45% and the South West 7.39%.

CRR/405: On the closing date, the seller will, as an originator for the purposes of the CRR and the AIFM Regulation, retain a material net economic interest of not less than 5.0% in the securitisation in accordance with the text of Article 405 of Regulation (EU) No 575/2013. Such interest will comprise retention of randomly selected exposures equivalent to no less than 5% of the nominal value of the securitised exposures.

The Seller, as the sponsor under the U.S. Risk Retention Rules, does not intend to retain at least 5% of the credit risk of the securitised assets for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, but rather intends to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non US transactions.

Compare/contrast: Precise Mortgage Funding 2015-2B & 2015-3R