SMHL Securitisation Fund 2018-2: 18 August 2018

A prime residential mortgage-backed pass-through securities transaction from originator Members Equity, where the collateral consists of fully amortising Australian dollar loans secured by first-registered mortgages over Australian residential properties.

At the cut-off date the portfolio consists of 5,318 consolidated housing loans (8,765 actual loans), where the average housing balance is A$235,050, and only 14 loans of greater than A$750,000 in the pool (representing 0.95% of current balances). Mortgage Loans by Occupancy (current balances): owner-occupied 80.00%, investment 20.00%. Loan Purpose: purchase 33.13%, re-finance 29.14%, other 32.20%. Mortgage Loans by Interest Option (current balances): Variable – Amortising 61.07%, Fixed Rate – Amortising 32.87%, other - 6.06%. Mortgage Insurer: Genworth Financial 31.42%, QBE 0.52%, HLIC 0.34%, uninsured 67.72%. The WA current LTV is 56.93% and the WA seasoning is 91.79 months. Regional concentration (by current balances): Vic-Metro 23.37%, WA-Metro 14.40%, NSW-Metro 10.78% and ACT-Metro 9.56%.

CRR/405: ME Bank will retain a material net economic interest of not less than 5.0% in the securitisation in accordance with the text of each of Article 405 of Regulation (EU) No. 575/2013 and Article 51 of Regulation (EU) No. 231/2013. As at the issue date, such interest will be comprised of certain randomly selected exposures held on the balance sheet of the Principal Approved Seller as required by the text of each of the Capital Requirements Regulation and the AIFM Regulation. Any change to the manner in which such interest is held will be notified to Bondholders.

Compare/contrast: SMHL Securitisation Fund 2017-1, La Trobe Financial 2018-1, Progress 2018-1