Triton Trust No 7 Bond 2017-2: 20 November 2017
This transaction consists of notes backed by a portfolio of first-ranking Australian residential mortgage loans. The series loans were originated through Origin Mortgage Management Services. Columbus Capital purchased the Origin business along with the portfolio of loans associated with the business in September 2012 and in March 2014 began origination of new mortgages under the Origin Programme. New residential loan applications and advances are processed by the Columbus Originator and have settled in excess of $1.28 billion in new loans. Origin is a wholesale distribution channel which provides “third party branded” funding for residential loans originated by a network of accredited mortgage managers throughout Australia.
At the cut-off date (30 September 2017) the pool will consist of 1,403 consolidated (1,737 unconsolidated) fully documented residential mortgage loans, and no loans in the pool were in arrears by more than 30 days. Average principal balance (consolidated) is A$355,993 and the maximum is A$1.243mln. Mortgage Insurer (by current balances): Genworth 34.07%, QBE 33.91%, No LMI 32.02%. Loan type: Principal & Interest – 72.77%, Interest Only – 27.23%. Interest type: variable – 90.40%, fixed 9.60%. Occupancy type: Owner Occupied – 64.71%, Investment – 35.29%. The WA current LVR is 64.50% and the WA seasoning is 8.5 months. State-wide distribution: NSW - 32.74%, Victoria - 29.24% and Queensland - 21.58%.
CRR/404-410: On the Closing Date and thereafter for so long as any Notes remain outstanding, Columbus Capital Pty Limited will, as an “originator” for the purposes of the EU Retention Rules, retain a material net economic interest of not less than 5% in this securitisation transaction in accordance with the EU Retention Rules. As at the Closing Date, the EU Retention will be in the form of pro rata retention in each of the tranches sold or transferred to investors as provided for in option (a) of Article 405(1) of the CRR.
US Risk Retention: Columbus Capital Pty Limited as Originator does not undertake to retain at least 5 per cent of the credit risk of the Mortgage Loan Rights for the purposes of the U.S. Risk Retention Rules. It is intended that the Originator will rely on an exemption provided for in the U.S. Risk Retention Rules regarding non-U.S. transactions.
Compare/contrast: Triton Trust No 2 Bond 2017-1, FirstMac Mortgage Funding Trust 2-2017, La Trobe Financial 2017-2