Kenrick No.3 plc: 27 January 2018
The West Bromwich returns to the securitisation market after an absence of almost five years with the first prime UK RMBS deal of the year (Prospectuses and Investor Reports for the earlier Kenrick transactions are available via the EuroABS website). As per the earlier transactions, this is a stand-alone deal and the Issuer will make payments on the Notes from payments of principal and revenue received from a portfolio comprising mortgage loans originated by West Bromwich Building Society and secured over residential properties located in England and Wales.
Eligibility criteria (includes): each Mortgage Loan was originated by the Originator in Sterling and is denominated in Sterling; each Mortgage Loan was made no earlier than 1 October 2015 and no later than 30 September 2017 (other than in respect of any Further Advances made after the Cut-off Date); no arrears of interest or principal on any Mortgage Loan as of the Closing Date; all of the Borrowers are individuals and were aged 18 years or older at the date of execution of the Mortgage; no Borrower has the right to require a Further Advance under the Mortgage Conditions of any Mortgage Loan; each Mortgage Loan is payable on a monthly basis and at least two monthly payments have been made in respect of each Mortgage Loan; all of the Properties are in England or Wales; so far as the Originator is aware no bankruptcy order has been made against any Borrower and no Borrower has applied for an individual voluntary arrangement or had a county court judgement entered against them in the period 6 years immediately prior to the point of origination of the relevant Mortgage Loan; no Mortgage Loan is a RTB Loan, an offset mortgage loan, an interest only mortgage loan, a help to buy mortgage loan or a buy-to-let mortgage loan; no Mortgage Loan has been granted on the basis of a self-certification of income by the Borrower.
At the cut-off date (30 September 2017) the provisional pool consisted of 3,371 mortgage loans, where the average current loan balance is £138,842 and the largest is for £906,227. Purpose of loan (by current balances): purchase – 53.48%, re-mortgage – 46.52%. Repayment method: repayment – 100.0%. Product type: fixed rate – 90.91%, floating – 9.09%. The WA current LTV is 70.70% (original LTV was 71.29%), the current indexed LTV is 69.99% and the WA seasoning is 3.83 months. Regional concentration: West Midlands – 15.00%, North West – 14.39%, South East – 14.21%, East Midlands – 13.87% and Yorks & Humber - 13.32%.
Significant Investor: WBBS will, on the Closing Date, purchase 100% of the Class B Notes
CRR 405: The Originator will retain a material net economic interest of at least 5% in the securitisation in accordance with the text of each of Article 405(1)(d) of Regulation (EU) No 575/2013), Article 254(2)(d) of Regulation (EU) No. 2015/35 and Article 51(1)(d) of Regulation (EU) No 231/2013. As at the Closing Date, such interest will be comprised of an interest in the first loss tranche.
US Risk Retention: The transaction is not intended to involve the retention by a sponsor of at least 5% of the credit risk of the securitized assets for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934 as amended, but rather intends to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non-U.S. transactions.
Volcker Rule: The Issuer is of the view that it is not now, and immediately following the issuance of the Notes and the application of the proceeds thereof it will not be, a "covered fund" as defined in the regulations adopted under Section 13 of the Bank Holding Company Act of 1956.
Compare/contrast: Kenrick No.2, Brass RMBS No 6 plc, Precise Mortgage Funding 2018-1B