Market Overview

KBRA Europe Assigns Preliminary Ratings to Towd Point Mortgage Funding 2018 – Auburn 12 Plc (TPMF 2018-AU12)


Kroll Bond Rating Agency Europe Limited (KBRA) assigns preliminary
ratings to five classes of notes from Towd Point Mortgage Funding 2018 -
Auburn 12 Plc (TPMF 2018-AU12), a UK RMBS transaction secured
predominantly by seasoned Buy-to-Let (BTL) mortgages. This transaction
is the 12th securitisation under the Auburn shelf, and the
first European rated RMBS securitisation for KBRA.

TPMF 2018-AU12 is a static RMBS securitisation. The £393.1 million
mortgage pool was originated by Capital Home Loans Limited (CHL) between
1994 and 2008, and CHL has sponsored several transactions that use the
Auburn label. The TPMF 2018-AU12 transaction is being issued to
refinance the remaining collateral that was securitised in Auburn
Securities 9 Plc.

CHL is a mortgage loan servicer incorporated as a limited company in
England and Wales. Prior to 2008, CHL operated as a large specialist
lender for BTL mortgages, during which time it originated the collateral
securing TPMF 2018-AU12. The company, which was established in 1987, was
the subject of two acquisitions over its history, and is currently owned
by Promontoria (Lansdowne) Limited. This entity is an affiliate of
Cerberus Capital Management (Cerberus), as is FirstKey Mortgage, LLC
(FKM), which serves as a co-sponsor of TPMF 2018-AU12. CHL's business
has evolved over the years, and it currently focuses on servicing
portfolios of legacy UK mortgage loans in the portfolios of entities
acquired by Cerberus.

KBRA's rating approach incorporates a review and analysis of the loan
originator, servicer and other key transaction counterparties, a review
of the Agreed Upon Procedure Report, use of the KBRA European Mortgage
Model (KEMM) for UK mortgages to analyse collateral and borrower
attributes, an assessment of the securitisation framework from a
structural and legal perspective, and ongoing surveillance of the
transaction. This analysis is further described in KBRA's European RMBS
Rating Methodology.

For complete details on the analysis, please see our pre-sale report, Towd
Point Mortgage Funding 2018 – Auburn 12 Plc (TPMF 2018-AU12)
which was published on July 23, 2018 on

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required,
pursuant to SEC Rule 17g-7, to provide a description of a transaction's
representations, warranties and enforcement mechanisms that are
available to investors when issuing credit ratings. KBRA's disclosure
for this transaction can be found in the report available here.


Further disclosures relating to this rating action are available in the EU
Information Disclosure Form
. Additional information regarding
KBRA policies, methodologies, rating scales and disclosures are
available at

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
recognized by the National Association of Insurance Commissioners as a
Credit Rating Provider and a certified Credit Rating Agency (CRA) by the
European Securities and Markets Authority (ESMA). Kroll Bond Rating
Agency Europe Limited is registered with ESMA as a CRA.

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