Dunmore Securities No. 1: 02 December 2018
The Issuer will make payments on the Notes from payments of principal and revenue on a portfolio comprising (i) mortgage loans legally and beneficially owned by Ulster Bank Ireland Designated Activity Company (“UBIDAC” or “Ulster Bank Ireland DAC” and, in its capacity as seller of the Mortgage Loans, the “Seller”), such Mortgage Loans being originated by UBIDAC or First Active Limited and secured over residential properties located in Ireland which will be purchased by the Issuer on the Closing Date, and (ii) additional Mortgage Loans secured over residential properties located in Ireland which may be purchased by the Issuer on the Additional Mortgage Portfolio Sale Date.
The Provisional Mortgage Portfolio (as at 31 October 2018) consisted of 13,979 income verified sub-accounts, where the average Sub Account balance is Eur156,737 and the largest loan balance is Eur1.406mln. Occupancy type (by current balances): Owner-occupied – 86.02%, BTL – 12.65%, Partially owner-occupied – 1.32%. Original Valuation Method: full – 99.96%. Repayment type: repayment – 99.36%, interest-only – 00.64%. Interest rate type: Floating for life – 88.17%, Fixed to float – 5.20%, others – 6.63%. The WA current indexed LTV is 68.74% (original LTV was 72.33%) and the WA seasoning is 10.29 years. Regional distribution: Dublin – 40.13%, Mid-East – 14.72% and South-West – 10.25%.
Significant investor: UBIDAC will, on the Closing Date, purchase 100% of the Notes.
EU Risk Retention: Ulster Bank Ireland DAC as an originator for the purposes of the CRR, the AIFMR Regulation and the Solvency II Regulation will retain a material net economic interest of not less than 5% in the securitisation in accordance with the text of each of Article 405 of the CRR, Article 51 of the AIFM Regulation and Article 254 of the Solvency II Regulation. As at the Closing Date, such interest will comprise of an interest in the first loss tranche and, if necessary, other tranches having the same or a more severe risk profile than those transferred or sold to investors and not maturing any earlier than those transferred or sold to investors, so that the retention equals in total no less than 5% of the nominal value of the securitised exposures comprising the Class X Notes and a portion of the Class Z Notes.
US Risk Retention: 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-U.S. transactions.
Compare/contrast: Ardmore Securities No.1, Dilosk RMBS No. 2, Dublin Bay Securities 2018-1