Dutch mortgage lender Obvion N.V. is structuring its 34th securitization of residential mortgages through its Purple Storm 2016 B.V trust.
The net principal in the portfolio is €1.23 billion, which will mostly back a series of Class A notes that will make up approximately 94% of the capital stack. The Class A notes will have 7.5% credit enhancement, and have preliminary triple-A ratings from Moody’s Investors Service, Fitch Ratings and Standard & Poor’s.
The deal is expected to close this month.
The Class B, C, and D notes rated will make up only 5.5% of the remaining pool assets, along with a 0.5% share to be held by an unrated subordinated Class Z notes tranche.
The presale reports note that some of the deal’s strengths include the fact that 32.9% of the loans in the pool carry a public Nationale Hypotheek Garantie (NHG) guarantee to reduce foreclosure losses, and the loan-to-foreclosure-value of 95.2% is similar to other Dutch RMBS transactions.
The loans, which are all current, also have a weighted average seasoning of four years.
S&P states that Obvion-originated mortgages have historically had strong performance over the 30 years Obvion has originated residential housing loans through the independent intermediary channel.
Cooperative Rabobank U.A. is lead arranger.