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Precise Mortgage Funding 2018-1B: 25 January 2018

Charter Court returns to the market with their ninth RMBS transaction (eight under the Precise name, one under Charter Mortgage Funding. All documentation, investor reports and LLD available via EuroABS), 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 1,740 buy-to-let mortgage loans acquired by the seller between September 2013 and September 2017 and secured over properties located in England and Wales. The average account balance is £141,898, the largest is £1.320mln and there are just 19 loans of £600,000 or greater in the pool (accounting for 6.14% of current balances).

Pool characteristics (by current balances): Self-employed borrowers account for 51.70% of the pool and first time buyers for just 0.25%. Loan purpose: Refinancing 50.86%, Home purchase 49.14%. Product type (by current balance): Fixed Rate Loan reverting to BBA LIBOR 65.29%, Floating linked to LIBOR 34.71%. Redemption type: Interest-only 89.20%, Re-payment Loans 10.80%. The WA current LTV is 67.41% (original LTV was 67.55%) and the WA seasoning is 10.70mnths. Regional concentration (by current balance): South East including London 34.75%, South West 14.90%, West Midlands 11.70% and the North West 11.13%.

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 2017-1B, Charter Mortgage Funding 2017-1, Tower Bridge Funding No.1