Mortgage insurance for residential mortgage-backed security (RMBS) trusts has been in use throughout Australia since the 1990's, because it makes sound business sense.
Lenders’ mortgage insurance provides cover against capital losses and recovery expenses on each insured loan in the trust, enhancing the overall credit-worthiness of the transaction by:
- improving the quality of assets in the trust. Policies are only provided on loans that are accepted after the insurer completes its analysis and due diligence using proprietary credit risk management tools, expertise and specialist underwriters.
- reducing cost of funds across all bonds when investors give credit to lenders’ mortgage insurance as an additional credit enhancement to subordination.
- increasing the credit rating of bonds issued by the trust due to the above benefits, with reduced subordination levels for senior and junior tranches.
Insurance can be obtained on either a loan-by-loan basis, at the time the loan is advanced to the borrower, or in bulk, where the loans have already been advanced.
If you require more information or have a bulk insurance request please email us at RMBS@qbe.com or contact Adam Darling, Regional Partnership Manager – NSW & Capital Markets on (02) 9231 7890.
To allow you to prepare your loan pool data we have created several templates and guidelines which will reduce the amount of effort required and streamline the end-to-end process.
All quotation and assignment forms can be located on the Forms section of our website.
Bulk LMI quote request form
The Bulk LMI quote request form contains high-level information regarding the tranche and allows us to prioritise and streamline the processing of your request. A completed Bulk LMI quote request form needs to accompany your quote request.
To assist you in preparing your loan pool we have developed a Bulk LMI guideline which details the types of loans that are, or are not, preferred or acceptable. Depending on the final pool composition we may conduct a physical due diligence before providing LMI cover for the loan pool.
Data collection guidelines
The data collection guidelines provide you with an overview of the data we require to make our decision to insure your loan pool. This includes the file format, data structures and rules. Alternative data structures are only acceptable with prior agreement.
Assignment forms and guidelines to assist with the assignment of existing policies are available on the Forms section.
You can contact a member of the Capital Markets and Structured Transactions team by emailing us at RMBS@qbe.com.