FTdA Santander Hipotecario 3

Although this will be the third residential mortgage-backed securities transaction brought
to the market by Santander, they have been a regular user of the securisation market in
the past for auto loans, SME, CLO's and consumer loans (see EuroABS for the full list).

The transaction is a cash flow securitisation of a static pool of 17,782 first-ranking res-
idential mortgage loans granted to individuals in Spain. All the loans have been granted to
individuals with little or no equity. The original loan-to-value is above 80% for all of the
loans included in the pool. However, approximately 37% of the pool by value benefits from
a mortgage insurance guarantee provided by either AIG or Genworth Financial. The aver-
age current loan per borrower is Eur166.258, with the oldest loan dating back to Sept 1993.
Average seasoning is 18mnths.

All of the loans in the portfolio have been fully disbursed, all are euro-denominated, and all
are paid via direct debit. All properties have undergone a valuation process as required by
law, and at closing, all the loans have paid at least four instalments. There is limited regional
concentration in the pool, with the 3 main areas being: Catalonia 17.2%, Andalucía 17% and
Madrid 15.8%.


Compare/contrast: FdTA Santander Hipotecario 2, BBVA RMBS 2 FTA, Ayt Kutxa
Hipotecario-II,