SMHL Securitisation Fund 2019-1: 12 June 2019
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 6,152 consolidated housing loans (9,144 actual loans), where the average housing balance is A$284,460 and there are 26 loans of greater than A$850,000 in the pool (representing 1.34% of current balances). Mortgage Loans by Occupancy (current balances): owner-occupied 71.44%, investment 28.56%. Loan Purpose: re-finance - 40.22%, purchase - 37.63%, other - 22.15%. Mortgage Loans by Interest Option (current balances): Variable – Amortising - 55.92%, Fixed Rate – Amortising - 30.72%, other – 13.36%. Mortgage Insurer: Genworth Financial 29.05%, QBE 7.40%, HLIC 0.11%, uninsured 63.43%. The WA current LTV is 62.57% and the WA seasoning is 63.57 months. Regional concentration (by current balances): Vic-Metro 22.19%, WA-Metro 15.44%, NSW-Metro 14.15% and QLD-Metro 8.73%.
EU Risk Retention: ME Bank will retain a material net economic interest of not less than 5% in the securitisation in accordance with Article 6(1) of the European Securitisation Regulation. 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 Article 6(3)(c) of the EU Securitisation Regulation.
US Risk Retention: None of the Arranger, the Joint Lead Managers, the Trustee, ME nor the Manager nor any of their affiliates makes any representation to any prospective investor or purchaser of the Bonds as to whether the transactions described in the Information Memorandum comply as a matter of fact with the U.S. Risk Retention Rules on the Issue Date or at any time in the future.
Compare/contrast: SMHL Securitisation Fund 2018-2, Pepper Residential Securities Trust No.24