Dutch Lender Obvion Plans €1.23B RMBS

Register now

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.

For reprint and licensing requests for this article, click here.