Shamrock Residential 2022-1 DAC (the "Issuer") has notified noteholders of two key issues identified by Mars Capital Finance Ireland DAC ("Mars"), the administrator of 51.2% of the mortgage loans in the portfolio.
An administrative error affected 382 ECB Tracker Mortgage Loans (estimated at 11.2% of total loans in the portfolio), where interest rate changes were not applied since November 2022, leading to a shortfall in collections. Mars will apply the corrected rates from November 2024, with no retroactive interest collection, and is willing to discuss with the Issuer regarding indemnification of shortfalls amounts (estimated as of November 2024 at €675,000). No borrower will be asked to make a payment with regards to the corrected interest rate until January 2025.
Additionally, Mars has not increased the variable rates for 793 borrowers (estimated at 30.5% of total borrowers in the portfolio) which had been under specific financial arrangements. These borrowers will transition to the current applicable rates, potentially increasing monthly payments and affecting repayment performance.
The interest payments on the rated notes have been made on a timely basis as of the last interest payment date (September 2024). At this time, KBRA does not expect that the above-mentioned issues will, in and of themselves, affect the ratings on the seven classes of notes outstanding under the transaction. KBRA continues to actively monitor the transaction and is in discussions with Mars to fully assess the implications.
Related Publications
- Shamrock Residential 2022-1 DAC Surveillance Report
- Shamrock Residential 2022-1 DAC New Issue Report
About KBRA
KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA's ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
Doc ID: 1006331
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Contacts:
Karl Cummins, Senior Director
+353 1 588 1240
karl.cummins@kbra.com
Gianfranco Di Paolo, Associate Director
+353 1 588 1205
gianfranco.dipaolo@kbra.com
Kali Sirugudi, Managing Director
+44 20 8148 1050
kali.sirugudi@kbra.com
Jack Kahan, Senior Managing Director, Head of Global RMBS
+1 646-731-2486
jack.kahan@kbra.com
Business Development Contacts
Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com
