...This report specifies Fitch Ratings' methodology for assigning new and monitoring existing ratings to obligations issued by securitisation transactions backed by equity release loan or financing products (ERLPs, also referred to as `loans' in this criteria report) in the UK, Europe, and Asia-Pacific (APAC) countries. Loans in scope are equity release mortgages and financing products, originated and underwritten by a lending institute, such as home purchase or reversion plans, which are secured by a residential property with cash flows due that closely replicate those of an equity release mortgage product. Features of in-scope loans include: i) no contractual monthly payments where interest accruals are capitalised; ii) prepayment options on the loan; iii) repayment of the loan being due upon death or moving into the long-term care of the borrower; and iv) the repayment amount due being limited to the property sale proceeds. The criteria may also apply to other products in conformity with...
