Mortgage Securitisation - Preferred

[mercyblue]

the libor rate that capstone will be using will be 2.01% as that was the libor rate on march 1st actually march 2nd as the 1st was a sunday. It wouldn't matter what it was on the 27th feb the rate is reset on a 3monthly basis on the 1st of the month march been one of them. Hope that clears that up.

Having said that not had a letter of crapstone telling me what the new figure is and its the 18th today...

[mercyblue]

The libor rate quoted is correct you can check it here BBA – British Bankers' Association - Home

[mercyblue]

I was wrong earlier when I said they would use the 2nd because the 1st was a sunday. Its just that when I first looked there was no data for the 1st march in the spreadsheet but having looked there isn't any for the 1st feb or january either. No idea why that would be.

[mercyblue]

brassed off they use 1st march to set the rate for the next three months. If you look at the last letter off crapstone it will list the jan-mar payments you get these letters even if you are on a fixed rate and the amounts are not changing

[mercyblue]

uneverdid I dont know why you havent had any letters regarding interest rates I always had them every three months even through the fixed rate period.

If your fixed rate is ending in june your new rate will be set by the libor on the 1st june. June will be the last payment on the fixed rate.

the current libor is 1.87% and seems to be dropping slightly each day. 1% on a hundred grand is about £86 in interest so that might give an indication of what you mght be paying come the summer.

[mercyblue]

CTSLink has the payment reports you would need to add an account to get them though and I cant get it to accept a phone number just says not a valid us phone number when I know it is a valid us phone number.

[mercyblue]

"Such rights may include the right of

a Borrower to redeem its Loan and related Collateral Security by repaying his Loan directly to the relevant

Legal Titleholder. These rights may result in the Issuer receiving less monies than anticipated from the Loans."

 

So as spml purport to be the legal titleholder and shows as such does this mean that when I (hopefully!) pay mine off I can pay it to spml direct i.e miss out the spv. Whether or not it would get to them of course I would never know but would be nice to think it didnt

[mercyblue]

SPV's certainly DO NOT expect or want the mortgage to go its full term as SS as pointed out on more than one occasion (not sure if this thread however). That is what he/she means by an unfair contract they NEVER had any intention of really giving you a 25year mortgage.

All Securitisations (it would seem) involve a concept called CPR or conditional prepayment rate

http://www.riskglossary.com/link/prepayment.htm

 

Have a look here at some uk cpr's from aug 08

 

http://www.markit.com/information/products/abs/weekly-review-21-aug-08/collateral_performance2.html

[mercyblue]

here are some figures someone might like to comment on

[mercyblue]

midge that is exactly what the figures I posted above show. In the year the total loans had gone from 735m to just over 4.5 billion yet the balance was just over 4billion so 500m had been paid off in just 1year or a cpr of about 11%.

Now that is for the entire eurosail portfolio what is the cpr for the original 735m.

Furthmore look at the discrepancy between the millions (£) in arrears and the actual losses and tell me than it isn't much much more lucrative to repossess.

[mercyblue]

exactly joncris. The bond holders expect to be repaid in full in about 5years. Just look at the cpr rates that are quoted

 

[mercyblue]

However, it is important not to forget that the CPR rates include mortgages, where the borrower and switched to a different product, i.e. a fixed, discount, tracker etc and where the borrower has moved to a new lender, which could have occured through natural choice (more competitve rate).

 

Without an actual breakdown of the cpr rates, the headline figure has is meaningless as we don't know what it is referring to.

 

All the above of course will have been factored in the original expected cpr. The only problem they have now is that it is more beneficial to the borrower (with the current interest rates) not to change their mortgage even if they could which would be highly unlikely in any case.

So the only way to keep the cpr rate up is by repossession. How many posts have been appearing on here complaining of capstone "administration errors" forcing them into (deeper) arrears?

 

 

[mercyblue]

sue with regards to your interest rate it exactly illustrates my point you would be much worse off were you to re-mortgage at this time.

Now people with a spml/ge money etc mortgage are finding the same to be the case. Remember these are somewhat more adverse than you are lucky enough to have. The eurosail prospectus I am using has a stabilized interest rate after the end of fixed/discount rates end of 3.15% above libor.

Now to use a libor rate from july 2007 that would mean the average customer paying an interest rate of above 9% pretty much untenable for most people to sustain I would have thought. Hence the need to re-mortgage, sell etc

This is/was the business model employed that the mortgage would be redeemed on or around the end of the fixed/discount rate ended.

Now consider the same average customer they would be paying an interest rate of 4.815% which is likely to be around the original fixed rate the customer was paying hence no desire or need to re-mortgage spv business model out of the window.

Now you also ask the valid question why haven't you been tricked/forced etc into arrears. Well I would say it stands to reason to target the most adverse customers first as they are already paying the most and of course any fees/costs/arrears you can bang on also attract interest at the same high rate. You would also want to factor in the original ltv. Then throw in for good measure the fact that capstone does an experian credit check monthly (common practice in the usa but I aren't even sure of its legality here).

 

[mercyblue]

and your point is?

[mercyblue]

well the new bba site is garbage. When it was still on the main site the rates were a week behind been posted not unreasonable the new seems to stop at feb this year.

[mercyblue]

go to thisismoney.co.uk that gives good coverage

[mercyblue]

southern pacific became eurosail all their prospectuses are available via the irish stock exchange Irish Stock Exchange

[mercyblue]

If you look in your terms and conditions there will be a section called transfer of the comany rights or something similar. In there you will find they can transfer it to anybody they want and that you have consented to such (by signing for the mortgage).

Interestingly (on mine at any rate) it also states once the mortgage is sold "the company will be released from furthur obligations to the borrower under the mortgage".

[mercyblue]

With regards to the terms and conditions what I quoted came from the booklet of terms and conditions.

Now I know for a fact that my mortgage has been securitized but the terms and conditions haven't changed. What it does mean though is that it is now set in stone, I cannot for negotiate with the "lender" to alter anything which does of course make a mockery of the govt pre-action protocols.

As for the fraud act again from the terms and conditions "the company in its absolute discretion at any time and without notice to the borrower transfer its rights under the loan conditions and/or the mortgage to any person or persons whatsoever" so I think that covers them.

A better path to go down, as me and sue have said before, is the fact that when these mortgages are sold off with the expectation that they all will be paid off within 4-5 years and that in reality there was never any intention to lend you the money for 25 years.