Latitude Australia Personal Loans Series 2017-1: 11 December 2017
The securitised portfolio will comprise Receivables that were originated by the GE Capital Australia consumer finance business and those subsequently originated by Latitude Personal Finance Pty Ltd. The Latitude Group originates Receivables through cross-selling to existing customers, third parties and directly. The Receivables are all fixed interest rate personal loan contracts with terms of between 18 and 84 months. The Customer makes a fixed monthly payment that comprises interest and principal, with the principal payments fully amortising the loan over the term of the loan.
Eligibility criteria (includes): the Relevant Documents do not specify a governing law other than Australian law; is denominated and payable only in Australian dollars; the Receivable was originated by or on behalf of an Originator; the Customer has fully drawn the amount available under that Receivable and the relevant Originator has no obligation to make any further advance in respect of that Receivable; the Receivable has an Outstanding Principal Balance of less than A$200,000.
As at the cut-off date (15 November 2017) the portfolio consisted of 44,107 loans, where the average loan size was A$15,277 and the largest is for A$60,842. Loan purpose (By current balances): re-financing 33.71%, debt consolidation 22.17%, home improvements & furnishings 14.65% and vehicle purchase & repair 9.37%. Regional concentration: QLD 28.93%, NSW 26.64%, VIC 20.79% and WA 12.53%.
CRR 405: Latitude Personal Finance Pty Ltd, as originator, confirms that it will retain a material net economic interest of not less than 5% of the nominal value of the securitisation in accordance with Article 405 of the CRR and Article 51 of the AIFMR. The form of the retention will be through Latitude's undertaking to retain the Seller Note in an amount of not less than 5% of the Outstanding Amount of the Eligible Receivables as at the Closing Date.
US Risk Retention: Latitude, as the sponsor under the Securities Exchange Act of 1934, does not intend to retain at least 5% of the credit risk of the securitised assets for the purposes of compliance with the U.S. Risk Retention Rules, 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.
Compare/contrast: Latitude Australia Credit Card (Series 2017-1), Crusade ABS Series 2016-1