OneSavings Bank subsidiary Rochester Mortgages Limited has entered into a mortgage sale agreement to acquire approximately £396m of UK residential mortgage loans from DB UK Bank, a subsidiary of Deutsche Bank.
Completion of the acquisition is conditional upon OneSavings Bank establishing an off-balance sheet securitisation vehicle, which will acquire approximately £374m of the mortgage loan portfolio.
OneSavings Bank will keep approximately £22m of the portfolio on balance sheet to comply with the retention requirements and will act as the co-arranger and master servicer of the securitisation. Morgan Stanley will also act as the co-arranger of the securitisation.
The acquisition of the retained mortgage loans will be satisfied by cash from the company’s resources.
Deutsche Bank AG and its affiliates expect to purchase notes and residual certificates in the securitisation and may seek to sell such notes and certificates to third party investors.