EBS Mortgage

L

larkel

Guest
I recently received my annual mortgage statement from EBS
Included in the correspondence was a letter stating that effective from 1 Dec 2008 that my mortgage had been transfered from EBS to a subsidary company EBSMF bank without consultation. When I contacted EBS they said they werent obliged to inform me about the transfere. Did any one else have this occur ? Any information would be greatly appreciated.
 
We got the same letter. Are you on a tracker? I wonder did they bundle all those mortgages together into this company?
 
Larkel,

Welcome to AAM.

I have had to remove 2 of your posts as you posted the subject 3 times.
 
As far as I can determine, EBSMF is a subsidiary of EBS established as a special purpose vehicle for a particular type of mortgage securitisation (asset covered securities, also known as "covered bonds"). They're a little different from other mortgage securitisations, in that the asset pool is dynamic - i.e. if you stop paying your mortgage, it'll be moved out of the asset pool because it's now non-performing; the whole thing is actively managed. It's a very different form of securitisation from the US type which helped precipitate at least part of the credit crunch: with asset covered securities, the investor is very safe indeed, which allows the issuer to give a relatively low coupon.

It should make no difference to you or to the administration of your mortgage - the terms conditions as set out in your original letter of offer still stand, and the subsidiary company has no authority to vary them.
 
EBSMF is a subsidary that can issue a covered bond so that the EBS can make more mortgages. I would not worry at all about the entity who owns your mortgage.
Some T&C indicate they do not have to tell you, but most do.
The EBS shoved a few billion of their 12+bn home loan book into this entity.
 
I presume that they'd hardly put what they consider risky mortgages into this vehicle?
JD
Dreamerb said:
As far as I can determine, EBSMF is a subsidiary of EBS established as a special purpose vehicle for a particular type of mortgage securitisation (asset covered securities, also known as "covered bonds"). They're a little different from other mortgage securitisations, in that the asset pool is dynamic - i.e. if you stop paying your mortgage, it'll be moved out of the asset pool because it's now non-performing; the whole thing is actively managed. It's a very different form of securitisation from the US type which helped precipitate at least part of the credit crunch: with asset covered securities, the investor is very safe indeed, which allows the issuer to give a relatively low coupon.
Click to expand...
 
jdwex said:
I presume that they'd hardly put what they consider risky mortgages into this vehicle?
JD
Click to expand...
You're right: the conditions of the bond set out maximum LTV ratios based on "prudent market value", and non-performing mortgages must be removed from the pool. That does leave the on-books lending profile having a higher proportion of the lender's riskier loans. As a corollary, that probably means that when these securitisations are done, the originating lender should ensure that their bad debt provision is at least maintained (making it a higher % of the overall lending) to reflect the fact that the mortgages moved to the special purpose vehicle have been assessed as having lowest to negligible default risk.
 
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