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Towd Point Mortgage Funding 2019 - Granite 5 Plc: 20 November 2019


A stand-alone issuance, where the Issuer will make payments on the Notes and Certificates from payments of principal and revenue received from a portfolio comprising unsecured personal loans originally originated by Landmark Mortgages Limited (formerly Northern Rock plc, Northern Rock (Asset Management) plc, NRAM plc and, latterly, Landmark Mortgages plc), an equitable or beneficial interest of which was acquired by the Issuer from the Seller on the Closing Date.

Note, the assets were previously securitised via the Towd Point Mortgage Funding 2016-Granite 3 plc transaction.

As at 30 September 2019 the full portfolio consisted of 17,072 loans, and where the average loan balance is £8,928. The WA Indexed LTV (based on combined Loan and linked mortgage loan balance) is 69.72% and the WA seasoning is 161 months. Loan Status: Current – 82.72%, >=3 Months in Arrears – 15.72%, >=12 Months in Arrears – 12.79%. Regional distribution: the North West – 16.81%, the South East – 13.65%, Yorkshire & Humberside – 12.66%, Scotland – 12.13% and the North – 10.98%.

Significant investor: Subject to the EU Retention Requirement and the U.S. Credit Risk Retention Requirement, CERH will, either directly or through one or more of its affiliates, acquire 100% of the Notes and the XB Certificates and, subject to the EU Retention Requirement and the U.S. Credit Risk Retention Requirement, may subsequently sell these on to third party investors.

EU Risk Retention: On the Closing Date, the Retention Holder (CERH), will undertake that it will retain (either directly or through a wholly-owned subsidiary or subsidiaries), on an ongoing basis, a material net economic interest of at least 5% in the securitisation as required by Article 6(1) of the EU Securitisation Regulation. Such interest will be comprised of retention of no less than 5% of the nominal value of each of the tranches sold or transferred to investors as required by Article 6(3)(a) of the EU Securitisation Regulation. Such retention requirement will be satisfied by the Retention Holder holding the economic exposure to the EU Retention Notes.

US Risk Retention: CERH and FirstKey Mortgage, LLC are required under Section 15G of the Exchange Act to ensure that one Co-Sponsor (directly or through a majority-owned affiliate of such Co-Sponsor) acquires and retains the U.S. Required Risk Retention Interest. The Co-Sponsors intend to satisfy the U.S. Credit Risk Retention Requirements on the Closing Date by designating CERH (the "Retention Holder") as the sponsor that will acquire and retain, directly or through a majority-owned affiliate, the U.S. Required Risk Retention Interest in the form of an EVI.

Compare/contrast: Towd Point Mortgage Funding 2016-Granite 3 plc (redeemed)