Novation Companies, Inc. Provides Information on Its Call Rights
KANSAS CITY, Mo., Aug. 17, 2018 /PRNewswire/ -- Novation Companies, Inc. (NOVC) ("Novation" or the "Company"), is issuing this press release to clarify the rights the Company has in forcing a clean-up call on the mortgage securities it owns.
Prior to the financial crisis of 2008, Novation offered mortgage origination services and packaged mortgages into mortgage-backed securitization deals through its subsidiaries NovaStar Mortgage, Inc. ("NMI") and NovaStar Mortgage Funding Corporation ("NMFC"). In these deals the Company often retained certain tranches of each securitization and also the servicing rights for those mortgages. A pooling and servicing agreement was prepared for each securitization, which outlined the specific securities issued for the deal, along with the servicing and termination rights for the deal. As part of the Company's departure from the mortgage origination business, Novation sold the servicing rights it originally retained. However, under the terms of the Servicing Rights Transfer Agreement ("Servicing Rights Agreement") between the Company ("Seller") and Saxon Mortgage Services, Inc. ("Purchaser") entered into on October 12, 2007 and made public in Novation public filings, the Company has the termination, or clean-up call rights, for certain deals.
The tables below show the securities that Novation currently owns. Additionally, as of the latest bondholder's statement, the tables also show the percentage of the current aggregate principal balance of each securitization in relation to the original principal balance and who has the call rights for the deal. Under the original pooling and servicing agreement, the Company had the call rights for each deal once the aggregate current principal balance of the mortgage was 10% or less than the original principal balance. The Servicing Rights Agreement replaced the original terms under the pooling and servicing agreements as related to the call rights. The Servicing Rights Agreements states that if the Company does not elect to exercise its call rights by the time the aggregate principal balance is 7%, then the Purchaser also has those call rights. Therefore, we believe both Novation and the Purchaser have these call rights as shown in the tables below. In addition, this agreement gives exclusive call rights on certain deals to the Purchaser for the NMFC 2006-4, NMFC 2006-5, NMFC 2006-6, NMFC 2007-1 and NMFC 2007-2 deals.
Monthly statements, Bond Remittance Statements, which are provided by the collateral manager for each securitization and offer a significant amount of detail for each of these securitizations are located on the Company website: http://www.novationcompanies.com/investors/bond-remittance.html. Investors interested in more information about the securities owned by Novation should refer to the Bond Remittance Statements.
| Table 1 - Both Novation and Purchaser have call rights |
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| Security Issue & Class |
Bondholder |
Remaining Amount |
Avg Interest |
Call Rights |
| 2002-3 B |
Jul-18 |
1.5% |
5.958% |
Novation and Purchaser |
| 2002-3 P |
Jul-18 |
1.5% |
5.958% |
Novation and Purchaser |
| 2002-3 AIO |
Jul-18 |
1.5% |
5.958% |
Novation and Purchaser |
| 2003-1 P |
Jul-18 |
1.6% |
5.584% |
Novation and Purchaser |
| 2003-1 AIO |
Jul-18 |
1.6% |
5.584% |
Novation and Purchaser |
| 2003-1 O |
Jul-18 |
1.6% |
5.584% |
Novation and Purchaser |
| 2003-2 CR |
Jul-18 |
2.0% |
5.325% |
Novation and Purchaser |
| 2003-2 P |
Jul-18 |
2.0% |
5.325% |
Novation and Purchaser |
| 2003-2 CT |
Jul-18 |
2.0% |
5.325% |
Novation and Purchaser |
| 2003-2 O |
Jul-18 |
2.0% |
5.325% |
Novation and Purchaser |
| 2003-2 R-II-2 |
Jul-18 |
2.0% |
5.325% |
Novation and Purchaser |
| 2003-2 R-III-2 |
Jul-18 |
2.0% |
5.325% |
Novation and Purchaser |
| 2003-2 R-IV-2 |
Jul-18 |
2.0% |
5.325% |
Novation and Purchaser |
| 2003-2 I-1 |
Jul-18 |
2.0% |
5.325% |
Novation and Purchaser |
| 2003-3 CR |
Jul-18 |
2.9% |
5.582% |
Novation and Purchaser |
| 2003-3 P |
Jul-18 |
2.9% |
5.582% |
Novation and Purchaser |
| 2003-3 CT |
Jul-18 |
2.9% |
5.582% |
Novation and Purchaser |
| 2003-3 O |
Jul-18 |
2.9% |
5.582% |
Novation and Purchaser |
| 2003-4 CR |
Jul-18 |
2.9% |
5.656% |
Novation and Purchaser |
| 2003-4 P |
Jul-18 |
2.9% |
5.656% |
Novation and Purchaser |
| 2003-4 CT |
Jul-18 |
2.9% |
5.656% |
Novation and Purchaser |
| 2003-4 O |
Jul-18 |
2.9% |
5.656% |
Novation and Purchaser |
| 2004-1 CR |
Jul-18 |
2.5% |
5.867% |
Novation and Purchaser |
| 2004-1 CT |
Jul-18 |
2.5% |
5.867% |
Novation and Purchaser |
| 2004-1 P |
Jul-18 |
2.5% |
5.867% |
Novation and Purchaser |
| 2004-1 R-II-2 |
Jul-18 |
2.5% |
5.867% |
Novation and Purchaser |
| 2004-1 R-III-2 |
Jul-18 |
2.5% |
5.867% |
Novation and Purchaser |
| 2004-1 R-IV-2 |
Jul-18 |
2.5% |
5.867% |
Novation and Purchaser |
| 2004-1 R-V-1 |
Jul-18 |
2.5% |
5.867% |
Novation and Purchaser |
| 2004-2 CR |
Jul-18 |
3.1% |
5.250% |
Novation and Purchaser |
| 2004-2 CT |
Jul-18 |
3.1% |
5.250% |
Novation and Purchaser |
| 2004-2 P |
Jul-18 |
3.1% |
5.250% |
Novation and Purchaser |
| 2004-2 O |
Jul-18 |
3.1% |
5.250% |
Novation and Purchaser |
| 2004-2 O |
Jul-18 |
3.1% |
5.250% |
Novation and Purchaser |
| 2004-2 R-II-2 |
Jul-18 |
3.1% |
5.250% |
Novation and Purchaser |
| 2004-2 R-III-2 |
Jul-18 |
3.1% |
5.250% |
Novation and Purchaser |
| 2004-2 R-IV-2 |
Jul-18 |
3.1% |
5.250% |
Novation and Purchaser |
| 2004-2 R-V-1 |
Jul-18 |
3.1% |
5.250% |
Novation and Purchaser |
| 2004-3 C |
Jul-18 |
3.5% |
5.401% |
Novation and Purchaser |
| 2004-3 R-II-1 |
Jul-18 |
3.5% |
5.401% |
Novation and Purchaser |
| 2004-3 R-III-1 |
Jul-18 |
3.5% |
5.401% |
Novation and Purchaser |
| 2004-3 R-IV-1 |
Jul-18 |
3.5% |
5.401% |
Novation and Purchaser |
| 2004-3 R-V-1 |
Jul-18 |
3.5% |
5.401% |
Novation and Purchaser |
| 2004-4 C |
Jul-18 |
3.3% |
5.108% |
Novation and Purchaser |
| 2004-4 R-II-1 |
Jul-18 |
3.3% |
5.108% |
Novation and Purchaser |
| 2004-4 R-III-1 |
Jul-18 |
3.3% |
5.108% |
Novation and Purchaser |
| 2004-4 R-IV-1 |
Jul-18 |
3.3% |
5.108% |
Novation and Purchaser |
| 2004-4 R-V-1 |
Jul-18 |
3.3% |
5.108% |
Novation and Purchaser |
| 2005-1 C |
Jul-18 |
4.5% |
5.132% |
Novation and Purchaser |
| 2005-1 R-II-1 |
Jul-18 |
4.5% |
5.132% |
Novation and Purchaser |
| 2005-1 R-III-1 |
Jul-18 |
4.5% |
5.132% |
Novation and Purchaser |
| 2005-1 R-IV-1 |
Jul-18 |
4.5% |
5.132% |
Novation and Purchaser |
| 2005-1 R-V-1 |
Jul-18 |
4.5% |
5.132% |
Novation and Purchaser |
| 2005-2 C |
Jul-18 |
5.7% |
5.111% |
Novation and Purchaser |
| 2005-2 R |
Jul-18 |
5.7% |
5.111% |
Novation and Purchaser |
| Table 2 - Novation has call rights currently or will have once the aggregate principal balance falls below 10%. |
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| Security Issue & Class |
Bondholder |
Remaining Amount |
Avg Interest |
Call Rights |
| 2005-3 CR |
Jul-18 |
7.4% |
4.682% |
Novation only |
| 2005-3 CT |
Jul-18 |
7.4% |
4.682% |
Novation only |
| 2005-3 M-11 |
Jul-18 |
7.4% |
4.682% |
Novation only |
| 2005-3 M-11 DSI |
Jul-18 |
7.4% |
4.682% |
Novation only |
| 2005-3 M-12 |
Jul-18 |
7.4% |
4.682% |
Novation only |
| 2005-3 M-12 DSI |
Jul-18 |
7.4% |
4.682% |
Novation only |
| 2005-4 CR |
Jul-18 |
8.2% |
4.524% |
Novation only |
| 2005-4 CT |
Jul-18 |
8.2% |
4.524% |
Novation only |
| 2005-4 M-10 |
Jul-18 |
8.2% |
4.524% |
Novation only |
| 2005-4 M-10 DSI |
Jul-18 |
8.2% |
4.524% |
Novation only |
| 2005-4 M-11 |
Jul-18 |
8.2% |
4.524% |
Novation only |
| 2005-4 M-11 DSI |
Jul-18 |
8.2% |
4.524% |
Novation only |
| 2005-4 M-12 |
Jul-18 |
8.2% |
4.524% |
Novation only |
| 2005-4 M-12 DSI |
Jul-18 |
8.2% |
4.524% |
Novation only |
| 2006-1 |
Jul-18 |
9.5% |
4.479% |
Novation only |
| 2006-1 C |
Jul-18 |
9.5% |
4.479% |
Novation only |
| 2006-1 M-09 |
Jul-18 |
9.5% |
4.479% |
Novation only |
| 2006-1 M-10 |
Jul-18 |
9.5% |
4.479% |
Novation only |
| 2006-1 M-11 |
Jul-18 |
9.5% |
4.479% |
Novation only |
| 2006-1 MTA1 |
Jul-18 |
9.5% |
4.479% |
Novation only |
| 2006-1MTA1 C |
Jul-18 |
9.5% |
4.479% |
Novation only |
| 2006-1MTA1 M-08 |
Jul-18 |
9.5% |
4.479% |
Novation only |
| 2006-1MTA1 M-09 |
Jul-18 |
9.5% |
4.479% |
Novation only |
| 2006-1MTA1 M-10 |
Jul-18 |
9.5% |
4.479% |
Novation only |
| 2006-2 CA |
Jul-18 |
12.6% |
4.765% |
Above termination threshold |
| 2006-2 CB |
Jul-18 |
12.6% |
4.765% |
Above termination threshold |
| 2006-2 M-09 |
Jul-18 |
12.6% |
4.765% |
Above termination threshold |
| 2006-2 M-09 DSI |
Jul-18 |
12.6% |
4.765% |
Above termination threshold |
| 2006-2 M-10 |
Jul-18 |
12.6% |
4.765% |
Above termination threshold |
| 2006-2 M-10 DSI |
Jul-18 |
12.6% |
4.765% |
Above termination threshold |
| 2006-3 CA |
Jul-18 |
15.0% |
4.544% |
Above termination threshold |
| 2006-3 M-09 |
Jul-18 |
15.0% |
4.544% |
Above termination threshold |
| 2006-3 M-09 DSI |
Jul-18 |
15.0% |
4.544% |
Above termination threshold |
| 2006-3 M-10 |
Jul-18 |
15.0% |
4.544% |
Above termination threshold |
| 2006-3 M-10 DSI |
Jul-18 |
15.0% |
4.544% |
Above termination threshold |
| 2006-3 M-11 |
Jul-18 |
15.0% |
4.544% |
Above termination threshold |
| 2006-3 M-11 DSI |
Jul-18 |
15.0% |
4.544% |
Above termination threshold |
| 2006-3 CB |
Jul-18 |
15.0% |
4.544% |
Above termination threshold |
| Table 3 - Purchaser has exclusive call rights |
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| Security Issue & Class |
Bondholder |
Remaining Amount |
Avg Interest |
Call Rights |
| 2006-4 CA |
Jul-18 |
15.9% |
3.288% |
Above termination threshold/Exclusive to Purchaser |
| 2006-4 CB |
Jul-18 |
15.9% |
3.288% |
Above termination threshold/Exclusive to Purchaser |
| 2006-4 M-07 |
Jul-18 |
15.9% |
3.288% |
Above termination threshold/Exclusive to Purchaser |
| 2006-4 M-10 |
Jul-18 |
15.9% |
3.288% |
Above termination threshold/Exclusive to Purchaser |
| 2006-4 M-11 |
Jul-18 |
15.9% |
3.288% |
Above termination threshold/Exclusive to Purchaser |
| 2006-4 M-12 |
Jul-18 |
15.9% |
3.288% |
Above termination threshold/Exclusive to Purchaser |
| 2006-4 M-10 DSI |
Jul-18 |
15.9% |
3.288% |
Above termination threshold/Exclusive to Purchaser |
| 2006-4 M-11 DSI |
Jul-18 |
15.9% |
3.288% |
Above termination threshold/Exclusive to Purchaser |
| 2006-4 M-12 DSI |
Jul-18 |
15.9% |
3.288% |
Above termination threshold/Exclusive to Purchaser |
| 2006-4 M-7 DSI |
Jul-18 |
15.9% |
3.288% |
Above termination threshold/Exclusive to Purchaser |
| 2006-5 CA |
Jul-18 |
20.3% |
1.075% |
Above termination threshold/Exclusive to Purchaser |
| 2006-5 CB |
Jul-18 |
20.3% |
1.075% |
Above termination threshold/Exclusive to Purchaser |
| 2006-5 M-10 |
Jul-18 |
20.3% |
1.075% |
Above termination threshold/Exclusive to Purchaser |
| 2006-5 M-11 |
Jul-18 |
20.3% |
1.075% |
Above termination threshold/Exclusive to Purchaser |
| 2006-5 M-12 |
Jul-18 |
20.3% |
1.075% |
Above termination threshold/Exclusive to Purchaser |
| 2006-5 M-10 DSI |
Jul-18 |
20.3% |
1.075% |
Above termination threshold/Exclusive to Purchaser |
| 2006-5 M-11 DSI |
Jul-18 |
20.3% |
1.075% |
Above termination threshold/Exclusive to Purchaser |
| 2006-5 M-12 DSI |
Jul-18 |
20.3% |
1.075% |
Above termination threshold/Exclusive to Purchaser |
| 2006-6 CA |
Jul-18 |
24.7% |
2.695% |
Above termination threshold/Exclusive to Purchaser |
| 2006-6 CB |
Jul-18 |
24.7% |
2.695% |
Above termination threshold/Exclusive to Purchaser |
| 2006-6 M-10 |
Jul-18 |
24.7% |
2.695% |
Above termination threshold/Exclusive to Purchaser |
| 2006-6 M-11 |
Jul-18 |
24.7% |
2.695% |
Above termination threshold/Exclusive to Purchaser |
| 2006-6 M-12 |
Jul-18 |
24.7% |
2.695% |
Above termination threshold/Exclusive to Purchaser |
| 2006-6 M-13 |
Jul-18 |
24.7% |
2.695% |
Above termination threshold/Exclusive to Purchaser |
| 2006-6 M-10 DSI |
Jul-18 |
24.7% |
2.695% |
Above termination threshold/Exclusive to Purchaser |
| 2006-6 M-11 DSI |
Jul-18 |
24.7% |
2.695% |
Above termination threshold/Exclusive to Purchaser |
| 2006-6 M-12 DSI |
Jul-18 |
24.7% |
2.695% |
Above termination threshold/Exclusive to Purchaser |
| 2006-6 M-13 DSI |
Jul-18 |
24.7% |
2.695% |
Above termination threshold/Exclusive to Purchaser |
| 2007-1 CA |
Jul-18 |
23.8% |
2.321% |
Above termination threshold/Exclusive to Purchaser |
| 2007-1 CB |
Jul-18 |
23.8% |
2.321% |
Above termination threshold/Exclusive to Purchaser |
| 2007-1 M-09 |
Jul-18 |
23.8% |
2.321% |
Above termination threshold/Exclusive to Purchaser |
| 2007-1 M-10 |
Jul-18 |
23.8% |
2.321% |
Above termination threshold/Exclusive to Purchaser |
| 2007-1 M-11 |
Jul-18 |
23.8% |
2.321% |
Above termination threshold/Exclusive to Purchaser |
| 2007-1 M-10 DSI |
Jul-18 |
23.8% |
2.321% |
Above termination threshold/Exclusive to Purchaser |
| 2007-1 M-11 DSI |
Jul-18 |
23.8% |
2.321% |
Above termination threshold/Exclusive to Purchaser |
| 2007-1 M-9 DSI |
Jul-18 |
23.8% |
2.321% |
Above termination threshold/Exclusive to Purchaser |
| 2007-1 N1 |
Jul-18 |
23.8% |
2.321% |
Above termination threshold/Exclusive to Purchaser |
| 2007-2 C |
Jul-18 |
24.0% |
Above termination threshold/Exclusive to Purchaser |
|
| CDO Class D |
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For more information, please visit www.novationcompanies.com or contact Carolyn Campbell, Chief Financial Officer, at 816.237.7000 or [email protected].
SOURCE Novation Companies, Inc.
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