Brass RMBS No 6 plc: 28 October 2017
This will be the sixth public RMBS from the Yorkshire Building Society and launches approximately one year after their last issue, but whereas previous issues under the Brass name were a static pool, on this occasion the issue has a 5-year revolving period.
Again, the issuer will make payments on the notes from payments of principal and revenue received from a portfolio comprising mortgage loans originated by Accord Mortgages Limited and secured over residential properties located in England, Wales and Scotland.
As at the cut-off date, the portfolio will consist of 15,190 (14,377 mortgage accounts) fixed-rate prime loans originated by Accord between 8 January 2007 and 31 July 2017. All are repayment loans and there are no Self-certified Loans, Buy to Let Loans, New Build Loans, Offset Loans nor Right to Buy Loans in the pool. The average current balance is £196,842 and the largest loan is for £1.877mln. Overall there are 234 loans of greater than £500,000 in the pool, accounting for 5.80% of current balances. Use of proceeds (by current balances): mortgage 62.1%, re-mortgage 37.9%. The current WA indexed LTV is 72.08% (original LTV was 89.85%) and WA seasoning is 11.7 mnths. Regional concentration (by current balances): South East 24.90%, Greater London 22.20%, North West 9.50% and the West Midlands 9.00%.
Please note: YBS will, on the closing date, purchase and retain the Class A Notes in an aggregate amount equal to £2bln.
CRR/405: Accord will undertake to the issuer and the trustee, on behalf of the note-holders, that it will retain a material net economic interest of at least 5.0% in accordance with the text of each of Article 405(1) of Regulation (EU) No. 575/2013, referred to as the Capital Requirements Regulation, and Article 51(1) of Regulation (EU) No 231/2013. As at the closing date, such interest will be comprised of an interest in the first loss tranche, in this case the Class Z VFN, as required by the text of each of paragraph (d) of Article 405(1) of the CRR and paragraph (d) of Article 51(1) of the AIFMR.
Compare/contrast: Brass RMBS 5, Charter Mortgage Funding 2017-1, Gosforth Funding Plc 2017-1