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Precise Mortgage Funding 2019-1B: 03 June 2019

Charter Court returns to the market with their eleventh RMBS transaction (nine under the Precise name, two under Charter Mortgage Funding), which is another stand-alone BTL RMBS deal and is similar to the earlier 2018-1B transaction. All documentation, investor reports and LLD for earlier deals is available via EuroABS.

CCFS is both an originator and servicer of residential mortgage loans in the United Kingdom and is 100% owned by Charter Court Financial Services Group Limited, a private limited company established on 1 October 2008. It trades as Precise Mortgages in the UK market.

At the cut-off date (28 February 2019), the provisional portfolio consists of 4,914 buy-to-let mortgage loans and secured over properties located in England and Wales. The average account balance is £159,332, the largest is £1.195mln and there are 75 loans of £600,000 or greater in the pool (accounting for 7.39% of current balances).

Pool characteristics (by current balances): Self-employed borrowers account for 50.92% of the pool and first time buyers for just 0.40%. Loan purpose: Refinancing 54.09%, Home purchase 45.91%. Product type (by current balance): Fixed Rate Loan reverting to LIBOR 81.64%, Floating linked to LIBOR 18.36%. Redemption type: Interest-only 91.02%, Re-payment Loans 8.98%. The WA current LTV is 72.58% (original LTV was 72.65%) and the WA seasoning is 12.41mnths. Regional concentration (by current balance): South East including London 45.47%, the North West 10.81% and the West Midlands 9.15%.

Significant investor: CCFS may on the Closing Date purchase 100% of the Class A2 Notes. CCFS has no obligation to retain the Class A2 Notes on an ongoing basis.

EU Risk Retention: On the Closing Date, CCFS will retain a material net economic interest of not less than 5.0% in the securitisation as required by Article 6(1) of Regulation (EU) 2017/2402. Such interest will comprise retention of randomly selected exposures equivalent to no less than 5% of the nominal value of the securitised exposures.

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 US transactions.

Compare/contrast: Precise Mortgage Funding 2018-2B, Finsbury Square 2019-1 plc, Twin Bridges 2019-1