Obvion, a Dutch mortgage lender owned by Rabobank, is kicking off 2017 with its 41st securitization of €1.19 billion in prime residential mortgages to homeowners in The Netherlands.
Storm 2017-1 B.V. includes five classes of notes, led by a senior Class A tranche that will comprise 93.02% of the notional value of the portfolio. The sizes of the individual series of Euro-denominated notes are to be determined. The A notes carry preliminary triple-A ratings from Moody’s Investors Service and Fitch Ratings.
The floating-rate ‘A’ bonds will be priced at 60 basis points above the three-month Euribor, with 6.98% subordination as part of an overall 8% total credit enhancement.
The notes are secured by a pool of mortgages originated by Obvion and extended to 6,347 prime borrowers with a pool balance of €1.19 billion, according to presale reports.
The loans in the pool were originated between 2002 and 2016, with none in arrears. The weighted average loan-to-market value of the collateral is 85.05%, and the average debt-to-income ratio for the homeowners is 27.5%, similar to previous STORM transactions.
The deal is structured similarly to past Oblivion deals, which had three prime securitizations of home loans last year. It also issued a first-time portfolio of homes with energy efficiency and eco-friendly upgrades through its Green Storm platform last June.
Nearly 31% of the loans are publicly backed guaranteed loans under the Dutch Nationale Hypotheek Garantie program, similar to levels in previous Obvion-issued securitizations. The NHG government-backed fund provides financial support for monthly mortgage payments to qualified borrowers who undergo hardships such as divorce or a death in the family.
Obvion, which is solely owned by Rabobank, is a monoline originator and servicer of Dutch mortgages, with assets of €29.9 billion and a market share of 3.8%.