Pepper Residential Securities Trust No. 21: 03 August 2018

As per previous Pepper issues, this issuance consists of notes backed by a pool of non-conforming mortgages originated by Pepper Homeloans Pty Limited through accredited mortgage aggregators and third-party brokers, and is secured by properties located in Australia.

The Eligibility Criteria for each mortgage loan (includes): is denominated in, and only payable in, Australian dollars; requires monthly or fortnightly payments sufficient to pay interest and fully amortise the principal over the loan term; the Debtor has no ability to make further advances under the Mortgage Loan other than with the consent of the relevant Warehouse Trustee in its entire discretion; the Debtor has no right to convert from a variable loan to a fixed rate in respect of Mortgage Loan; the Mortgage Loan is not a construction loan.

The portfolio consists of 2,257 variable-rate consolidated loans secured by first registered mortgages over residential real estate, where the average consolidated mortgage loan balance is A$444,444. Documentation level (by current balance): Full 65.51%, Alt 34.47% and Low 0.02%. Distribution by Repayment Type: Principal and Interest 76.30%, Interest Only 23.70%. Distribution by Occupancy Status: Owner Occupied 71.39%, Investment 28.61%. The WA seasoning is 7.62 months. Geographic Location: VIC Metro 29.63%, NSW Metro 27.97%, NSW Non-Metro 13.38% and Queensland Metro 7.26%.


CRR/405: On the Closing Date and thereafter Pepper will, as an originator for the purposes of the risk retention rules under Articles 404 – 410 (inclusive) of Regulation (EU) No 575/2013 of the European Parliament and Council, retain a material net economic interest of not less than 5% in this securitisation. As at the Closing Date, the EU Retention will be in the form of a pro-rata retention in each of the tranches sold or transferred to investors and will be comprised by Pepper holding 100% of the shares in the Retention Vehicles who will, between them, hold not less than 5% of the aggregate Invested Amount of each Class of Notes.


Compare/contrast: Pepper Residential Securities Trust No.20, FirstMac Mortgage Funding Trust 4 Series 1-2018