Twin Bridges 2017-1: 23 July 2017
A standalone issuance where the Issuer will make payments on the Notes from payments of principal and revenue received from a portfolio comprising buy-to-let mortgage loans sold by Paratus AMC Limited which were originated by the seller directly or under the lending platform established by Landbay Partners Limited with Landbay as initial lender of record, and secured over residential properties located in England and Wales.
Paratus AMC Limited is a provider of primary and special servicing for UK residential mortgages with approximately £2.5bn of residential mortgage loans under management. Paratus's primary business is mortgage lending and origination in the United Kingdom.
As at the portfolio reference date (31 May 2017) the portfolio consisted of 1,291 buy-to-let accounts, where the average outstanding balance is £188,417 and the largest is for £918,000. The Mortgage Loans in the Provisional Mortgage Portfolio were originated under two brands, Foundation Home Loans (64.0%) and Keystone (36.0%). The Mortgage Loans were originated by the Seller itself apart from circa £30 million Landbay Mortgage Loans which were originated under the lending platform established by Landbay.
All loans were subject to a full property valuation, and all are performing. Borrower type: individual 71.70%, limited company 28.30%. Redemption type: interest-only 96.51%, capital & interest 3.49%. Loan purpose: re-mortgage 63.30%, purchase 36.70%. Product type: Fixed (Reverts to 3M Libor) 94.70%, other 5.30%. The WA CLTV is 70.36% (OLTV was 70.46%) and the WA seasoning is 8.35 months. Regional concentration: London 43.70%, South East 21.70%, Eastern 9.50%, and South West 6.90%.
Significant Investor: The Seller will on the Closing Date purchase 100% of the Class Z1 Notes and 100% of the Class Z2 Notes and will hold 100% of the Residual Certificates.
CRR: On the Closing Date and until all the Notes other than the Class Z Notes have been redeemed in full, Paratus AMC Limited, will, as an originator for the purposes of the CRR, the AIFM Regulation and the Solvency II Regulation retain a material net economic interest of not less than 5% in the securitisation (representing downside risk and economic outlay). The Retention will be satisfied by the Retention Holder subscribing for and thereafter holding an interest in the first loss tranche, represented by the retention by the Seller of the Class Z1 Notes and the Class Z2 Notes.
The transaction is not intended to involve the retention by a sponsor for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, as amended, but rather it is intended to rely on an exemption provided for in Rule 20 of the U.S. Risk Retention Rules regarding non U.S. transactions.
Compare/contrast: Stanlington, Oat Hill No.1, Precise Mortgage Funding 2017-1B