The lenders expected housing prices to continue rising, as had been the case for decades, which would thereby
overcollateralize the loans.
Prepayment penalties are pledged to
overcollateralize Ocwen's securities to reduce the impact of runoff.
On an annual basis, as calculated by Fitch, aggregate pledged cash flows excluding carry-forward surpluses
overcollateralize bond debt service by a minimum of 2.1x through maturity.
On an annual basis, aggregate pledged cash flows excluding scheduled reserve deallocations
overcollateralize both the senior and subordinate lien bonds' debt service by a minimum of 1.3x, which is comparable to Fitch's 'AAA' median for minimum annual loan-to-bond debt service coverage.
On an annual basis, loan repayments
overcollateralize bond debt service by a minimum of 1.4x, which is equal to Fitch's 'AAA' rating category median.
On an annual basis, loan repayments alone
overcollateralize bond debt service by a minimum of 4.3x, which compares very favorably to Fitch's median level of 1.4x.
On an annualized basis, such surplus loan repayments
overcollateralize aggregate bond debt service by a minimum of 15x, which is well in excess of Fitch's 2017 'AAA' median of 1.4x.
On an annualized basis, such surplus loan repayments
overcollateralize bond debt service by a minimum of 1.2x.
On an annual basis, pledged cash flows excluding scheduled reserve deallocations
overcollateralize both the senior and junior lien bonds' debt service by a minimum of 1.3x.
On an annual basis, pledged cash flows excluding carry-forward surpluses
overcollateralize bond debt service by a minimum of 2.0x until the very last year of the program's life, at which point overcollateralization decreases to 1.6x.