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Dilosk RMBS No. 3: 21 April 2019

Another stand-alone transaction under the Dilosk name. On this occasion the issuer will make payments on the notes from payments of principal and revenue on a portfolio comprising mortgage loans which were originated by Dilosk DAC and are secured over residential properties located in Ireland.

Dilosk Limited was incorporated in Ireland as a private company on 4 August 2013. The entire issued share capital of Dilosk comprises class A and class B shares, all of which are owned by: Fergal McGrath (CEO), Dr Oran McGrath (COO) and three other private shareholders. Dilosk was established as a new and alternative residential mortgage lender in the Irish market and trades under the recently acquired ICS Mortgages brand. The primary business of Dilosk is the origination and funding of residential mortgage loans in Ireland with a particular focus on Buy-To-Let mortgages.

At the cut-off date (28 February 2019) the portfolio consisted of 916 buy-to-let loans, where the average current balance is Eur192,759 and the largest is for Eur1.072mln. Repayment type (by current balances): interest only 75.68%, repayment 18.64%, and flexi mortgage 5.68%. Interest rate type: variable 100.0%. Mortgage Loan Purpose: purchase 50.29%, re-mortgage 48.90%, other 0.81%. Borrower type: individual 71.32%, commercial 17.87%, pension trust 10.80%. The WA current LTV (non-indexed) is 56.28%, the original LTV was 56.77% and the WA seasoning is 10.35 months. Regional concentration: Dublin 75.23% and Cork 6.84%.

Significant Investor: The Seller will, on the Closing Date, subscribe for 100% of the Class X2 Notes, the Class Z1 Notes, the Class Z2 Notes and the Class R Notes.

EU Risk Retention: On the Closing Date and until all the Notes have been redeemed in full, Dilosk as originator (the Retention Holder) will retain a material net economic interest of not less than 5% in the securitisation as required by Article 6 of Regulation (EU) 2017/2402 (the Securitisation Regulation). As at the Closing Date, the Retention will be satisfied by the Retention Holder subscribing for and thereafter holding an interest in the first loss tranche, represented in this case by the retention by the Retention Holder of the Class Z1 Notes and the Class Z2 Notes.

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 securitised 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.

Compare/contrast: Dilosk No.2, Jepson Residential 2019-1, Mulcair Securities DAC