Do Banks do Reverse MortgagesAre Banks Making Reverse Mortgages?
26 August - Fitch Ratings has confirmed the Emerald I Reverse Memorandum of Association 2006-1 Trust's Note. Specifically, the deal is a securitization of reverse mortgages granted by Bluestone Equity Release Pty Ltd (Bluestone). Subsequent to the April 2011 payments date, promotions and balance will be as follows: This affirmation reflects Fitch's belief that the present level of credits enhancements supports the debt security valuations appropriately and that the portfolio's return in terms of debtor exits and real estate assets and interest rate returns will remain in line with its expectation.
At the April 2011 settlement date, the trust's reverse mortgages book had 643 borrowers' exit mortgages of AUD 57.7 million. Withdrawals occur usually in the forms of debtor death, illness (change to long-term care) or volunteer advance payments. Most of the previous withdrawals from the fund are due to either optional advance payments (444 exits) or credits bought back from the Bluestone Equity Release Series 1 Warehouse Trusts (74 exits), while 90 and 35 exit payments are attributable to death and morbidity, respectively.
At the end of April 2011, the Group' debt to equity gearing was approximately 30.0% w/o 20.5% at issuance and the Group' debt to equity gearing was 75.3 years w/o 70.5 years at issuance. It has the particularity of a rising liability account which, after the April 2011 settlement date, had increased to a combined A$125.7 million, from an original debt account of A$112. 2 million.
Most of the rise is due to the capitalization of interest, further loans and periodical installments to borrower, which are financed by further loans or promised loans. There were no non-refunded withdrawals from the Liquiditätsfazilität on the April 2011 settlement date. Please be aware that the issuance balance reflects the amount due to be remitted to the bearers of the Notes, the promised advanced credit line and the other lender.