Bulletin: RMBS Exposure To Sterling Bank's Advantage Loan Program

NEW YORK (S&P Global Ratings) Dec. 20, 2019--On Dec. 9, 2019, Sterling Bank and Trust FSB, Southfield, Mich. (Sterling), a wholly owned subsidiary of Sterling Bancorp Inc., announced via an SEC form 8-K filing that it had voluntarily and temporarily suspended its Advantage Loan program in connection with an ongoing internal review of the program's documentation procedures. S&P Global Ratings has rated seven outstanding transactions containing loans originated under the Advantage Loan program. Concentrations are generally limited (ranging from 4% to 24%) in six of the seven transactions; however, in one transaction, Bunker Hill Loan Depositary (BHLD) 2019-1, Sterling Advantage Loan program originations comprised 58% of the pool. All of these loans were subject to a third-party due diligence review,

...December 20, 2019 NEW YORK (S&P Global Ratings) Dec. 20, 2019--On Dec. 9, 2019, Sterling Bank and Trust FSB, Southfield, Mich. (Sterling), a wholly owned subsidiary of Sterling Bancorp Inc., announced via an SEC form 8-K filing that it had voluntarily and temporarily suspended its Advantage Loan program in connection with an ongoing internal review of the program's documentation procedures. S&P Global Ratings has rated seven outstanding transactions containing loans originated under the Advantage Loan program. Concentrations are generally limited (ranging from 4% to 24%) in six of the seven transactions; however, in one transaction, Bunker Hill Loan Depositary (BHLD) 2019-1, Sterling Advantage Loan program originations comprised 58% of the pool. All of these loans were subject to a third-party due diligence review, the results of which were incorporated into our analysis. Thus far, the transactions have performed per our expectations. Delinquencies on the Sterling loans in these pools have...

Bulletin