Residential Mortgage Securities No 29 plc: 03 May 2017
A stand-alone issue where the Issuer will make payments on the Notes and the Certificates from payments of principal and revenue received from a portfolio comprising mortgage loans originated by the Originators and secured by first, second and third ranking securities over residential properties located in England, Wales, Scotland and Northern Ireland, which will be purchased by the Issuer from Kayl on the Issue Date.
The Seller, Kayl, is incorporated under the laws of Luxembourg and is a company whose purpose is, among other things, the acquisition, holding, management and disposal of participations and interests, in any form whatsoever, in Luxembourg and in foreign companies or other business entities, enterprises or investments, and the acquisition by purchase, subscription, or any other manner as well as the transfer by sale, exchange or otherwise of stock, bonds, debentures, notes, certificates of deposits and any other securities or financial instruments of any kind, as well as the ownership, administration, development and management of its portfolio. Kayl is a wholly-owned direct subsidiary of Kayl Holdco S.àr.l. and is an affiliate of the Legal Title Holders, which are wholly-owned indirect subsidiaries of Kayl Holdco S.àr.l.
The portfolio is comprised of 7,157 loans which were originated by the Originators (Money Partners 51.95% by current balances, KMC and affiliates 45.41%, acquired loans 2.11% and KPL 0.53%) between January 1997 and September 2014. The Acquired Loans comprise mortgage loans originated by a number of third party originators being DB UK Bank Limited trading as DB Mortgages, Edeus Mortgage Creators Limited, GMAC-RFC Limited, Infinity Mortgages Limited, Mortgages PLC, Preferred Mortgages Limited and Southern Pacific Mortgages Limited.
The average balance is £75,270 and the largest is £796,011. Borrower type (by current balances): Self-certified 64.63%, Self-employed 49.78%, BTL 2.88%. Interest Rate Type: apart from one loan, all are at floating rates of interest. Repayment Type: Interest Only 69.37%, Repayment 29.62%, Part & Part 1.01%. Months in Arrears: Current 64.58%, 30+ Arrears 35.42%, 90+ Arrears 22.29%. CCJs: 23.32%. The WA current LTV is 76.22% (original LTV was 78.60%) and the WA seasoning is 131.13 months. Regional concentration (by current balances): Greater London 19.23%, South East 16.97%, North West 13.60% and Yorkshire & Humberside 9.47%.
Please note, substitution of the loans contained in the mortgage pool may occur in accordance with the terms described in the prospectus.
CRR 405: Kayl Holdco S.à r.l. will undertake that it will retain on an ongoing basis, as an originator within the meaning of Article 405(1)(d) of Regulation (EU) No. 575/2013 of the European Parliament, a material net economic interest of at least 5% in the securitisation in accordance with the CRR and Article 51(1)(d) of the AIFMD Level 2 Regulation and Article 254(2)(d) of the Commission Delegated Regulation (EU) 2015/35. In order to satisfy the EU Retention Requirement on the Issue Date, Kayl Holdco will hold exposure to the F3 Notes and the Z Notes in an amount such that the total nominal value of exposure to the F3 Notes and the Z Notes held by it is at least equal to 5% of the nominal value of the Mortgage Pool as at the Issue Date.
Kayl Holdco, as a "sponsor" for the purposes of the U.S. Risk Retention Rules, is required under the U.S. Risk Retention Rules to acquire and retain (either directly or through a majority-owned affiliate) at least 5% of the credit risk of the securitised assets of the Issuer. Kayl Holdco (in such capacity, the "U.S. Risk Retention Holder") intends to comply with the requirements by acquiring on the Issue Date and retaining, either directly or through a majority owned affiliate, the U.S. Risk Retained Interest in the form of an eligible horizontal residual interest equal to at least 5% of the fair value of the Notes and Certificates as determined under the generally accepted accounting principles of the U.S.
Compare/contrast: RMS 28, Stanlington No.1 PLC