CMF 2020-1 PLC: 28 February 2020
The Issuer will make payments on the notes from payments of principal and revenue received from a portfolio comprising mortgage loans and their related security originated by Charter Court Financial Services Limited under its trading name of Precise Mortgages, and acquired by Broadlands and secured over residential properties located in England, Wales and Scotland.
This transaction represents the third public securitisation transaction that is backed exclusively by prime residential mortgage loans originated by Charter Court Financial Services under its trading name of Precise Mortgages.
As at the Portfolio Reference Date, the Provisional Portfolio comprises of 2,085 fully amortising repayment loans, secured over owner-occupied properties located in England, Wales and Scotland. All mortgages are first legal mortgage / first ranking standard security, all were subject to a full property valuation and none were in arrears. The average current balance is £168,071 and the largest is for £829,925. Interest rate types: Fixed Rate Loan reverting to LIBOR 86.99%, fixed switching to BBR 11.77%, other 1.24%.
Additional information (% of current balances): self-employed borrowers 34.20%, first time buyers 38.80%, refinanced loans 27.40%. The WA current LTV is 69.87% (original LTV 71.23%) and the WA seasoning is 10.89 months. Regional concentration (by current balances): South East incl. London 31.39%, East Anglia 12.69%, the North West 11.24% and East Midlands 8.98%.
EU Risk Retention: On the Closing Date, CCFS will retain on an ongoing basis a material net economic interest of not less than 5% in the securitisation as required by Article 6(1) of Regulation (EU) 2017/2402. As at the Closing Date, such interest will comprise retention of randomly selected exposures equivalent to no less than 5% of the nominal value of the securitised exposures, where such exposures would otherwise have been securitised in the transaction affected by the Issuer in accordance with Article 6(3)(c) of the Securitisation Regulation.
US Risk Retention: 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, 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.
STS: CCFS will, on or about the date of the Prospectus, submit a notification to the European Securities and Markets Association in accordance with Article 27 of the Securitisation Regulation, confirming that the requirements of Articles 19 to 22 of the Securitisation Regulation have been satisfied with respect to the Notes.
Volcker Rule: The Issuer is of the view that it is not now, and immediately after giving effect to the offering and sale of the Notes and the application of the proceeds thereof on the Closing Date will not be, a "covered fund".
Compare/contrast: Charter Mortgages 2018-1, Precise Mortgage Funding 2020-1B, Darrowby No. 5 plc