Loan Participation Portfolio: LP#

Transcription

1 6801 Parkwood Page 1 Boulevard Plano TX Loan Participation Portfolio: LP# Please read all information for specific details and instructions A well-capitalized credit union located in the southern central US is offering a pool of Fixed Mortgage Loans for sale through Catalyst Corporate Federal Credit Union s loan participation program. The portfolio is offered on a Non-Recourse basis. Loan Portfolio Highlights As of 3/07/2018 Current Portfolio Balance (100%): $ 22,118, Seller Retention # of Loans in Portfolio Retained by Seller: $ 2,211, % 63 Amount Available for Sale: $ 19,907, Minimum Avg./ Wtd. Average Maximum Original Loan Balances $ 48, $ 362, $ 1,114, Original Term Original Loan to Value 72% 82% 100% Current Loan Balances $ 17, $ 351, $ 1,102, Current Remaining Term Loan Interest s 3.75% 4.10% 7.38% Current Loan to Value 26% 78% 94% Combined Loan to Value 72% 93% 100% Gross WAC: 4.10% Net WAC: 3.85% Wtd. Avg. Rem. Term: 344 mos. Wtd. Avg. Loan Age: 16 mos. Loan / Pool Parameters 100% Full Documentation 100% Primary Home Servicing:.25% Loan Participation Highlights Very Strong credit quality. Weighted Average credit score = 754. Weighted Average DTI Top Ratio: 21.18% Bottom Ratio: 32.79% Excellent credit performance. Charge offs for 2016 and 2017 have been negligible. Seller is located in a growing region with solid economic activity. Experienced loan participation seller. The information herein is believed to be reliable and has been obtained from sources believed to be reliable. Catalyst Corporate Federal Credit Union (Catalyst) makes no representation as to the accuracy or completeness of such information. Prospective buyers of this loan participation must conduct their own independent due diligence review and make a decision accordingly. Catalyst does not render legal or accounting advice. The buyers and seller are solely responsible for the accounting and legal requirements associated with this transaction.

2 Page 2 WTD. AVG. PASS THROUGH INTEREST RATE: 3.85% PURCHASE PRICE: CREDIT UNION BUYERS YIELD: 3.901%* The pool has a 6.35 year weighted average life based on 12 CPR projected prepayment speed. Please see Bloomberg screen below for price/yield calculations. Minimum Purchase Amount: 90% Carve outs available for purchases of $5 million or more. (Pricing subject to profile of carve out portfolio) Projected Settlement Date: April 2018

3 Page 3 Loan Participation Details Non- Recourse: Buyers assume their pro rata share of the credit risk in the portfolio. Losses for 2016 and 2017 have been zero. Annualized net charge offs are projected to be minimal at 10 basis points. Clean Up call = 5%. When the remaining par balance outstanding falls below 5% of the original 100% portfolio balance the participation may be paid off by the seller. Due Diligence: A complete package of due diligence information is available including a random sample of loans. Additional loan files are available upon request. Please Submit a Completed Confidentiality Agreement to Review the Due Diligence Information. Loan Participation Agreement: The seller has provided a loan participation agreement which is included with the due diligence information. Buyers should review this document in conjunction with the due diligence review. Catalyst has not reviewed the terms of this agreement as it relates to buyer and seller rights and responsibilities. Purchase Commitment Process: o o o Purchase Commitments are accepted on a first come first served basis. A Purchase Commitment Form is provided with the due diligence packet. Upon completion of your review, please submit your purchase commitment to Catalyst Corporate via to loanparticipations@catalystcorp.org. Accrued Interest at Settlement: Buyers will pay their pro rata share of accumulated accrued interest on the loans as of the cut-off date calculated using the pass through interest rate for the number of days in which interest has accrued for each loan. Principal and Interest: Paid monthly. Pass-through interest rate is the actual loan interest minus 25 bps servicing fee. The actual pass through rate will vary based on the composition of the loan pool. The Net Weighted Average Interest was 3.85% as of the 3/07/18 data file. Monthly Reporting and Remittances: The selling credit union will provide the monthly remittances and reporting to each credit union buyer by the 18th of each month (If the 18th falls on a Saturday, Sunday or Holiday, the reports and remittances will be provided the prior working day). Loan portfolio stratification reports begin on page 6.

4 Page 4 Risk Considerations The following summary is not a complete list of all possible risks. The items mentioned below represent a general summarization of potential risks. This summary is not meant to replace the deliberate due diligence mechanisms of the buyer. GENERAL ECONOMIC CONDITIONS The performance of the loans may vary depending upon regional and national economic factors, such as unemployment rates, employment conditions, interest rates, bankruptcy rates, and similar factors that affect the ability of consumers to meet their debt obligations. PREPAYMENTS - In the event and to the extent that a prepayment is paid, prepayments will prematurely reduce the Portfolio s outstanding principal balance and thus reduce the Portfolio s interest earning ability. The greater the amount of prepayment, the lower the Portfolio s return will be. Prepayments cannot be controlled by the seller or servicer and much of the performance results are dependent upon current economic conditions. LOAN LOSSES - The following information is provided to assist in interpreting loan loss statistical information with respect to the Portfolio. o Loan losses can be calculated annually or cumulatively. Cumulative loan loss is found by calculating the percentage of original loan amount that results in loan loss from inception to the Portfolio s final maturity (when no active loans remain). o Annualized loss rates are useful for determining the impact of losses on the Portfolio s yield as well as determining the timing and amount of the allowance for loan loss funding. Annualized loan loss can be determined by calculating the percentage of a Portfolio s average yearly balance that results in loan loss. o Economic Climate - high unemployment and low interest rates are two leading factors that affect prices and therefore loan losses. Loan Participation Disclosures The information contained in this Offering does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Past performance does not guarantee future performance. Calculations or projections included in this Offering are for illustrative purposes only and are not guaranteed to be accurate or complete. Unauthorized downloading, re-transmission, storage in any medium, copying, redistribution, reproduction, or republication for any purpose of the information contained in this Offering is strictly prohibited. Catalyst Corporate Federal Credit Union is not responsible for any damages (direct, indirect, special, economic, or consequential) in respect of any use of this Offering and any of its content. Catalyst Corporate Federal Credit Union (Catalyst Corporate) does not service or guarantee the performance of the loans. Any questions or concerns about the loan participation portfolio (including due diligence information, when it is provided) must be discussed with the credit union seller and resolved BEFORE submitting a purchase order. (Seller contact information is provided with the due diligence packet)

5 Page 5 Loan Participation Instructions and Information If you are interested in pursuing a purchase of this loan participation: 1. Submit a completed Confidentiality Agreement / Indication of Interest Form for access to the due diligence information. This form may be found on Catalyst Corporate s website at source/forms/confidentiality agreement.pdf?sfvrsn=6. Please send the form to Catalyst Corporate via to loanparticipations@catalystcorp.org. 2. Upon receipt of the executed form, Catalyst Corporate will provide access to the Loan Participation functions in TranZact, which houses the due diligence information. You will receive instructions from a Catalyst Corporate team member regarding set-up and access. 3. The due diligence information will be available through March 30, Once you have completed your review, you may submit your Purchase Commitment Form to Catalyst Corporate via to loanparticipations@catalystcorp.org. This form is included with the due diligence information. Purchase Commitment Forms will be accepted on a first come first served basis until the balance available for sale has been sold. 5. All purchase orders shall be deemed unconditional and irrevocable offers to purchase on the terms identified herein, and in accordance with the terms and conditions set on Loan Participation Agreement that is included with the due diligence information. 6. All offers are subject to acceptance by the selling credit union. Settlement A signed and executed copy of each buyer(s) Loan Participation Agreement must be provided to Catalyst Corporate before settlement can take place. After agreements are received from all buyers (signed by seller), we will request an updated portfolio from the seller for a final review and notify all parties (via ) with the anticipated settlement date and final settlement amount. Updated portfolio balances reflecting principal reductions from the original data file thru the final data file will be used for settlement. Catalyst Corporate FCU - Loan Participation Team Loan Participations: option 6 Jeff Hamilton: loanparticipations@catalystcorp.org jhhamilton@catalystcorp.org

6 Page 6 Stratification Reports PORTFOLIO SUMMARY Description Minimum Average / Weighted Average Maximum Original Loan Balances 48, , ,114, Current Loan Balances 17, , ,102, Interest 3.75% 4.10% 7.38% Original Term Remaining Term Loan to Origination 72.39% 82.03% % Combined Loan to Value 72.39% 92.63% % Current Loan to Value 25.57% 77.79% 93.96% Bottom Debt Ratio 13.98% 32.79% 83.26% STRATIFICATION BY CREDIT SCORE Cre dit Score Le ve l # of Loa ns Curre nt Ba la nce % of Loa n LT V , % 4.56% 94.51% , % 5.58% 93.11% ,964, % 4.06% 78.11% ,273, % 4.02% 80.89% and above 42 14,937, % 4.07% 82.13% 347 STRATIFICATION BY CURRENT BALANCE Curre nt Ba la nce of Loa n # of Loa ns Curre nt Ba la nce % of Loa n Term $15, $49, , % 5.50% $50, $99, , % 5.43% $100, $199, ,184, % 4.75% $200, $299, ,880, % 4.20% $300, $399, ,721, % 4.07% $400, $499, ,550, % 3.97% $500, $599, ,050, % 3.99% $600, $699, ,088, % 3.92% $700, $799, , % 4.00% $800, $899, ,500, % 3.88% $900, $999, , % 3.88% $1,000, $1,499, ,102, % 3.88% STRATIFICATION BY ORIGINAL TERM No. Months in Original T erm # of Loans Current Balance % of Loan Term % ST RAT IFICAT ION BY REMAINING T ERM No. Months Re ma ining # of Loa ns Curre nt Ba la nce % of Loa n ,628, % 4.73% ,490, % 3.98%

7 Page 7 STRATIFICATION BY RATE Interest # of Loans Current Balance % of Loan 3.75% % 18 10,562, % 3.88% % % 26 8,092, % 4.08% % % 5 1,582, % 4.32% % % 4 676, % 4.64% % % 3 535, % 5.03% % % 3 268, % 5.41% % % % 0.00% % % 2 216, % 6.25% % % % 0.00% % % 1 66, % 6.75% % % 1 118, % 7.38% STRATIFICATION BY PROPERTY DESCRIPTION Property Description # of Loans Current Balance % of Loan Weighted Avg LTV C 8 1,636, % 4.45% % P 25 8,748, % 4.13% % SF 30 11,733, % 4.03% % STRATIFICATION BY OCCUPANCY Occupa ncy # of Loa ns Curre nt Ba la nce % of Loa n Weighted Avg LTV PrimaryResidence 4.10% % STRATIFICATION BY LOAN CATEGORY Loan T yupe # of Loa ns Curre nt Ba la nce % of Loa n Weighted Avg LTV 30 YEAR FIXED 4.10% % ST RAT IFICAT ION BY LT Origination LT Origina tion # of Loa ns Curre nt Ba la nce % of Loa n 71% - 75% 2 620, % 4.16% % - 80% 41 16,888, % 3.98% % - 85% 2 1,135, % 3.93% % - 90% 3 977, % 4.24% % - 95% 9 1,777, % 4.52% % - 100% 6 719, % 5.93% STRATIFICATION BY Combined LTV Combine d LT V # of Loa ns Curre nt Ba la nce % of Loa n 71% - 75% 2 620, % 4.16% % - 80% 6 2,417, % 3.95% % - 85% 2 1,135, % 3.93% % - 90% 4 1,185, % 4.20% % - 100% 49 16,759, % 4.12%

8 Page 8 STRATIFICATION BY Current LTV Curre nt LT V # of Loa ns Curre nt Ba la nce % of Loa n 0% - 59% 2 146, % 6.16% % - 65% 1 153, % 5.50% % - 70% 2 660, % 4.02% % - 75% 11 4,330, % 4.12% % - 80% 39 14,573, % 4.04% % - 85% 5 1,089, % 4.49% % - 90% 2 803, % 3.92% % - 95% 1 361, % 4.38% STRATIFICATION BY BOTTOM DEBT RATIO Debt Ra tio # of Loa ns Curre nt Ba la nce % of Loa n 0.00% - 25% 15 5,877, % 3.96% % - 30% 9 3,179, % 4.07% % - 35% 9 2,643, % 4.39% % % 15 5,306, % 4.07% % - 45% 9 3,676, % 4.04% % - 50% 4 944, % 4.27% % - 55% % 0.00% % - 75% 1 361, % 4.38% % - 95% 1 128, % 6.25% STRATIFICATION BY TOP DEBT RATIO Debt Ratio # of Loa ns Curre nt Ba la nce % of Loa n 0.00% - 25% 45 15,888, % 4.05% % - 30% 6 2,441, % 4.09% % - 35% 5 1,935, % 4.13% % % 4 735, % 4.92% % - 45% 3 1,117, % 4.19%