Aegon Saecure 14 NHG

Transcription

SAECURE 14 NHG
An Update on the Residential Mortgage Business
March 2014
Information for investors
Disclaimer
This material has been prepared solely on the basis of information provided by Aegon Levensverzekering N.V. (“Aegon Leven”) and Aegon Hypotheken B.V. (“Aegon Hypotheken”, and together with Aegon Leven, “Aegon” or the “Company”).
This material is distributed upon the express understanding that no information contained herein has been independently verified by Citibank International plc as arranger (the “Arranger”), ABN AMRO Bank N.V., Bank of America Merrill Lynch,
BNP Paribas, London Branch, Citibank International plc and The Royal Bank of Scotland plc, the joint lead managers in respect of the Class A Notes, together and with the Arranger, the “Managers” or any other person. Although the
information in this material has been obtained from/of sources which the Company and the Managers believe to be reliable, the Managers and the Company make no representation or warranty (express or implied) of any nature, nor do they
accept any responsibility or liability of any kind, with respect to the accuracy or completeness of any of the information or opinions in the material. However this shall not restrict, exclude, or limit any duty or liability to any person under any
applicable laws or regulations of any jurisdiction which may not lawfully be disclaimed. The Company and the Managers will not be responsible for the consequences of reliance upon any opinion or statement contained herein or for any
omission.
This material has been prepared for information purposes only and it does not constitute a prospectus or offering document in whole or in part. The terms of the offering are qualified in their entirety by such a prospectus (the “Prospectus”)
which will be issued in respect of the securities (the “Securities”) described in this material and which is expected to be approved by the Dutch Authority for the Financial Markets (the “AFM”) on or prior to the issuance date of the Securities.
The information contained in this material does not constitute an offer of securities to the public for the purposes of any law or regulation implementing Directive 2003/71/EC and any amendment thereto, including Directive 2010/73/EU
(together, the “Prospectus Directive”), to the extent implemented in each Member State of the European Economic Area ("Member State") that has implemented the Prospectus Directive.
The information contained herein is confidential and is intended for use only by the intended recipient(s) (each a “Recipient”). This material is not intended for U.S investors. Neither this material nor any copy of it may be taken or transmitted
into the United States of America, its territories or possessions (collectively, the “United States”) directly or indirectly. Any failure to comply with these restrictions may constitute a violation of U.S. or other securities laws, as applicable. This
material and all information contained herein is being provided to you solely for your review during a road show presentation. This material is provided on the basis of your acceptance of the terms of this disclaimer. This material was prepared
in order to indicate, on a preliminary basis, the feasibility of a possible transaction and does not carry any right of publication or disclosure to any other person. Neither this material nor any of its contents may be used for any other purpose
without the prior written consent of SAECURE 14, the Company and the Managers.
If this material has been made available to you in an electronic form, you are reminded that documents transmitted via this medium may be altered or changed during the process of electronic transmission and consequently neither SAECURE
14 NHG B.V. ("SAECURE 14"), the Company, the Managers nor any subsidiaries, affiliates or ultimate holding companies, nor any of the subsidiaries or affiliates of such holding companies, nor any of the respective directors, officers,
employees, advisors, representatives or agents of any of the foregoing (together, “Related Parties”) accepts any liability or responsibility whatsoever in respect of any difference between the document distributed to you in electronic format and
the hard copy version available to you on request from any of the Managers.
NOT FOR DISTRIBUTION TO ANY U.S. PERSON (AS DEFINED BELOW) OR TO ANY PERSON OR ADDRESS IN THE US
The Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States
and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. Persons (as defined in Regulation S under the Securities Act, "U.S. Person").
This material is being distributed only to, and is directed only (i) at persons in Member States who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive and (ii) in the United Kingdom of Great Britain and
Northern Ireland (the UK), at qualified investors (a) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order")
and qualified investors falling within Article 49 of the Order, and (b) to whom this material may otherwise be lawfully communicated . This document must not be acted on or relied on by, nor are the Securities herein referred to available to any
other persons. This material is not available to any persons who are subject to US securities laws and it should not be distributed in the US or to any U.S. person nor in any jurisdiction in which its distribution would be prohibited. By reviewing
this material each Recipient represents that it is a person into whose possession the material can be lawfully delivered in accordance with the laws of the jurisdiction in which the Recipient is located and that the Recipient may not, nor is it
authorised to, deliver this document to any other person.
The proposed structure and facilities described in this material are indicative, are meant to develop over time, and are subject to, amongst others, final approval of SAECURE 14 and the Company, satisfactory documentation and relevant
contracts, satisfactory legal, tax and accountancy opinions, satisfactory valuation of the underlying assets and due diligence. Material information may have changed since the date the information was compiled in this material.
Any historical information is not indicative of future performance. Opinions and estimates may be changed without notice and involve a number of assumptions which may not prove valid. Average lives of and potential yields on any securities
cannot be predicted as the actual rate of repayment as well as other relevant factors cannot be determined precisely. No assurance can be or is given that the assumptions on which such information are made will prove correct. Information of
this kind must be viewed with caution.
2
Disclaimer
This material contains “forward-looking statements”. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance of the Securities, the
Company or the Dutch residential mortgage loan industry to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because
they relate to events and depend on circumstances that may or may not occur in the future.
None of SAECURE 14, the Company, the Managers nor their Related Parties have attempted to verify any such statements, nor do they make any representations, express or implied, with respect thereto, nor do they accept any obligation to
update the forward-looking statements contained herein to reflect actual results, changes in assumptions, or changes in factors affecting these statements.
This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell the Securities or any other securities or any interest in any securities, and nothing herein should be construed as a
recommendation or advice to invest in any securities. It has no regard to the specific investment objectives, financial situation or particular needs of any Recipient. No representation or warranty, either express or implied or undertaking of any
nature, is provided by the Managers, SAECURE 14 or the Company in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by Recipients as a substitute for the exercise of their own
judgement. Any opinions expressed in this material are subject to change without notice and none of SAECURE 14, the Company, nor the Managers are under any obligation to update or keep current the information contained herein. In
addition, institutions mentioned in this material and their Related Parties may make purchases and/or sales as principal or agent or may act as market maker or provide investment banking or other services in respect of the Securities and/or
the transactions described in this material (the "Transactions").
None of SAECURE 14, the Company, the Managers nor their respective Related Parties are acting as advisers to, nor owe any fiduciary duty to any Recipient. This material does not purport to identify all of the risks associated with the
Transaction(s). None of SAECURE 14, the Company, the Managers nor any of their respective Related Parties makes any representation regarding the provision of advice to any Recipient concerning the appropriate legal treatment,
regulatory treatment, accounting treatment or possible tax consequences of an investment in the Securities. Each Recipient of this material should make its own independent evaluation of the Transaction(s) and the risks thereof, and of the
relevance and adequacy of the information in this material and should make other investigations as it deems necessary, and consult its own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you
deem it necessary, and make your own investment, hedging and trading decisions (including decisions regarding the suitability of the Securities) based upon your own judgement and advice from such advisers as you deem necessary and not
upon any view expressed in this material. In particular, each Recipient should first read the Prospectus prior to making an investment decision and should base such investment decision solely upon the information contained in the Prospectus.
Once approved by the AFM, the Prospectus will be available from the Managers. Reproduction and/or redistribution of this material (in whole or in part) is strictly prohibited and none of SAECURE 14, the Company, the Managers nor their
respective Related Parties accept any liability whatsoever for the actions of third parties in this respect.
INTERNAL REVENUE SERVICE CIRCULAR 230 DISCLOSURE
PURSUANT TO INTERNAL REVENUE SERVICE CIRCULAR 230, PERSONS ARE HEREBY INFORMED THAT ANY DESCRIPTION SET FORTH HEREIN WITH RESPECT TO U.S. FEDERAL TAX ISSUES WAS NOT INTENDED OR
WRITTEN TO BE USED, AND SUCH DESCRIPTION CANNOT BE USED BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING ANY PENALTIES THAT MAY BE IMPOSED ON THE TAXPAYER UNDER THE U.S. INTERNAL
REVENUE CODE. ANY SUCH DESCRIPTION WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF THE CLASS A NOTES. TAXPAYERS SHOULD SEEK ADVICE BASED ON THE TAXPAYER’S PARTICULAR
CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.
Unless otherwise expressly indicated thereon, this material has not been reviewed or approved by any rating agencies or by any regulatory agency.
3
Content
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4
Executive Summary
Transaction Overview
Page
5
8
The Dutch Economy and Housing Market
14
The Dutch Residential Mortgage Market
20
The Dutch RMBS Market in Perspective
35
Aegon‟s Residential Mortgage Loan Origination, Underwriting & Servicing
46
Aegon Highlights
60
Appendix: Portfolio Stratification Tables
64
Appendix: Priority of Payments
86
Executive summary
5
Highlights of SAECURE 14 NHG
Aegon is pleased to announce the proposed issuance of securities by SAECURE 14 NHG B.V. as Issuer
 The intention is to offer notes under the SAECURE 14 NHG transaction which will comprise notes denominated in
EUR
SAECURE 14
NHG
 The issue is collateralised by prime Dutch residential mortgage loans originated and serviced by Aegon
Levensverzekering and Aegon Hypotheken, which are 100% indirect subsidiaries of Aegon N.V. (“Aegon NV”)
 Historical performance of Aegon's total residential mortgage loan portfolio has been stable over the last ten years
 Aegon is one of the top 5 lenders in the Dutch residential mortgage market
 Aegon NV is an international life insurance, pension and asset management company based in The Hague, the
Netherlands, with businesses in over twenty markets in the Americas, Europe and Asia
 As of the cut-off date 31st December 2013, the portfolio outstanding net principal balance was approximately EUR
1,502 million, WA Loan to Market Value of approximately 95.1 % and WA Seasoning of 2.54 years
Prime
quality
collateral
 The static portfolio consists of first and sequentially lower ranking secured, owner occupied, Dutch prime residential
mortgage loans with a broad geographical diversification
 The portfolio predominantly consists of fixed rate mortgage loans with long reset periods of typically 10 – 20 years
exclusively originated by Aegon Leven and Aegon Hypotheken
 “Full doc”1 underwriting in line with the Dutch Code of Conduct with respect to the granting of mortgage loans with a
focus on affordability
 100% of the portfolio relates to mortgage loans that have the benefit of the NHG guarantee
1Full
6
document underwriting is underwriting based on all necessary and verified documentation in accordance with Aegon’s underwriting processes and
procedures. All documentation is recorded
Preliminary capital structure and transaction features
Proposed Note Structure
Series
Note Size1
Fitch / S&P
WAL2
FORD
Class A1
EUR
22.8 %
[AAAsf / AAA(sf)]
[2.0]yrs
30th Jan 2019
3m Euribor+ []bps
[10]%
Offered
Class A2
EUR
68.2%
[AAAsf / AAA(sf)]
[4.9]yrs
30th Jan 2019
[10]%
Offered
Class B
EUR
4.0%
[NR / NR]
NA
30th Jan 2019
3m Euribor
3m Euribor
[6]%
Retained
[NR / NR]
NA
30th
3m Euribor
3m Euribor
[1]%
Retained
[NR / NR]
NA
0%
0%
[0]%
Retained
Class C
EUR
5.0%
Total
EUR
100%
Class D
EUR
1%
Coupon until FORD Coupon after FORD
Jan 2019
NA
Main Features of the Class A1 / A2 Notes 4
3
Status
Transaction Parties
 Application will be made to list the Class A Notes on NYSE Euronext in Amsterdam
(Euronext Amsterdam). The other Classes of Notes will not be listed
Arranger:
Citibank International plc
 The First Notes Payment Date (“NPD”) is on 30 April 20144 and the Final Maturity
Date is on 30 January 20924
Managers and
Bookrunners:
 The First Optional Redemption Date (“FORD”) is on 30 January 20194; if the Class
A1/A2 Notes are not redeemed on the FORD then the margin will double
ABN AMRO, BNP Paribas,
BoAML, Citibank International
plc, RBS
Cash Advance Facility
Provider:
Bank Nederlandse Gemeenten
(AA+/Aaa/AAA) (S/M/F)
Issuer Account Bank:
Bank Nederlandse Gemeenten
(AA+/Aaa/AAA) (S/M/F)
Swap Counterparty:
BNP Paribas
(A+/A2/A+) (S/M/F)
 Credit enhancement for the Class A1/A2 Notes is provided via subordination
([9]1%), a reserve fund initially funded by the issuance of the Class D Notes
([1]1%), and an annual excess spread of 50 bps (of the Class A – C Notes minus
PDL) provided through the swap
Expressed as a percentage of the aggregate of the Class A, B and C Notes
Deutsche Bank AG
Paying Agent and Principal
of [5.0]%, no arrears or losses, no further advances and an assumed call on
(Amsterdam) (A/A2/A+)
Paying Agent:
the First Optional Redemption Date (“FORD”), WALs in the Preliminary Prospectus
(S/M/F)
3Credit enhancement shown in table does not include excess spread
4NPDs are on the 30 th day of each January, April, July & October (Modified Following) until redemption
Credit ratings accurate as of 3 March 2014. Refer to rating
Note: Investors are pointed towards the risk factors section of the Preliminary Prospectus
agency websites for additional detail
1
2CPR
7
Credit
enhancement
Currency
Transaction overview
8
SAECURE 14 NHG structure overview
SAECURE 14 NHG transaction structure is typical for Dutch RMBS issues

Dutch Special Purpose Vehicle (“SPV”) owned by an independent foundation („Stichting‟)

Legal title transfer of mortgage loan receivables through silent assignment („stille cessie‟) at closing

Mortgage loan receivables and other rights of the Issuer pledged to the security trustee through pledge agreements

Only receivables from prime Dutch residential mortgage loans originated by Aegon as collateral

No substitution / replenishment2

Interest rate risk hedged through swap agreement
SAECURE 14 NHG Structure Diagram1
Stichting Holding
SAECURE 14 NHG
B.V.
Swap
Counterparty
(BNP Paribas)
Seller, Servicer
and Sub-Servicer
(Aegon
Levensverzekering
N.V.)
Swap
Agreement
100%
ownership
Mortgage
Receivables
Issuer
Purchase Agreement
SAECURE 14 NHG
B.V.
Servicing
Agreement
Transfer of title
to the Mortgage
Receivables
Servicing
Agreement
Provider (N.V. Bank
Nederlandse
Gemeenten)
Swap Counterparty
(BNP Paribas)
Account Bank (N.V.
Bank Nederlandse
Gemeenten)
Issuer Account
Agreement
Account Bank
Note
Proceeds
Noteholders
Notes
Parallel Debt
Sellers
(Aegon Leven /
Aegon Hypotheken)
Notes proceeds +
Deferred Purchase
Price
Principal and
interest on
Mortgage loans
Issuer
SAECURE 14 NHG
B.V.
Principal and
interest
Note Proceeds
Trust Deed
Security
Trustee
Reserve
Account
Note Proceeds
Notes
A1
A2
B
C
D
Preliminary prospectus
for the addition of further advances subject to the additional purchase conditions including annual cap of [1]% of the aggregate Outstanding Principal
Amount of portfolio mortgage loans
2Except
9
Cash Advance
Facility Provider
MortgageReceivables
Purchase Agreement
Seller and
Servicer
(Aegon
Hypotheken
B.V.)
1Source:
SAECURE 14 NHG Transaction Cash Flow Structure
Structural Features
Principal Priority of Payments

The Notes of each Class rank pari passu without any preference or priority among Notes of the same Class. Payments of principal on the
Class A2 Notes are (time) subordinated to, inter alia, payments of principal on the Class A1 Notes.
Reserve Account (non-amortising)


A Reserve Account (funded by the Class D Notes at closing) at [1.0]% of the principal amount outstanding on the Notes (excluding the Class
D Notes) on the Closing Date, will be available
The Reserve Account will be replenished in the interest waterfall up to the target level of [1.0]%, if sufficient revenue funds are available

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The maximum facility available amount will be the greater of 1.5% of the principal amount outstanding of the Class A Notes on the relevant
calculation date and 1.0 % of the principal amount outstanding of the Class A Notes on the Closing Date
364-day facility, extendable at the discretion of the cash advance facility provider
Commingling risk
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All borrowers pay into the Seller collection account (held at ABN AMRO (A/A2/A+)1 (S/M/F) by means of direct debit on the first business day
of each month
On each Mortgage Collection Payment Date 2 each Seller will transfer to the Issuer the scheduled amount of principal and interest and an
estimated amount of prepaid principal (120% of the previous month‟s prepayments)
Following an Assignment Notification Event3 and expiry of any applicable grace period, the respective Seller undertakes to immediately notify
the borrowers, Aegon Leven as the insurance company and any other relevant party, of the assignment of mortgage loans and the
beneficiary rights relating thereto whereafter borrowers will make payments directly to the Issuer
Set-off risk
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10
Fitch and S&P have both considered the potential set-off exposure related to life loans4 in determining the credit enhancement levels
Structural features mitigate set-off risk on savings mortgage loans by means of, amongst other things, the participation agreements
Set-off risk applies to 4.9% of loan portfolio at the cut-off date
Source: Preliminary Prospectus
1Credit rating accurate as of 3 March 2014. Refer to rating agency websites for additional detail.
2The 1 st day of each calendar month or next succeeding Business Day
3Please refer to the Prospectus for a description of the Assignment Notification Events
4Life Loans include Life Mortgage Loans and Universal Life Mortgage Loans under which no principal is paid until maturity but instead the borrower pays a premium to
Aegon Leven on a monthly basis. These insurance premiums are invested by the insurance company in certain investment funds. It is the intention that the Life Loans
will be fully or partially repaid by means of the proceeds of the Life Insurance Policies.
Hedging Arrangements
Interest Rate Swap
11

To hedge the risk of a difference between the rate of interest to be received by the Issuer on the Mortgage Receivables and the rate of
interest payable by the Issuer on the Class A Notes (which float over 3-month Euribor), the Issuer will enter into an interest rate swap
agreement with BNP Paribas

The Issuer will pay to the Swap Counterparty the scheduled interest proceeds from the Mortgage Receivables minus senior expenses and
minus 50bps excess spread applied to the EUR principal amount outstanding of Class A – C Notes

In return, the Swap Counterparty will pay to the Issuer the scheduled interest due on the Class A – C Notes

If any payment made by the Issuer to the Swap Counterparty is less than the amount due to be paid, then the corresponding payment
obligation of the Swap Counterparty shall be reduced by an amount equal to such shortfall. Furthermore, certain corrections will be made
for savings and construction mortgage loans

Payments to the Swap Counterparty rank senior to the Class A Noteholders pre- and post-enforcement1
1Excluding swap termination payments which rank subordinate to the Class A Noteholders pre- and post-enforcement where there has been an Event of
Default relating to the swap counterparty or an Additional Termination Event in relation to the credit rating of the Swap Counterparty
SAECURE 14 NHG portfolio highlights
Selected eligibility criteria
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12
Borrowers were at the time of origination, residents of the
Netherlands and not employed by a Seller or any of its group
companies
First and sequentially lower ranking mortgage loans only
At least one (interest) payment has been made prior to the
closing date
No bridge loans
Mortgage loan is fully disbursed or is a fully disbursed
construction mortgage loan subject only to the related
construction deposit not exceeding 50% of the original
outstanding mortgage loan balance
Both floating and fixed interest rates
Interest payments are scheduled to be paid monthly and in
arrear by direct debit
No amounts due were overdue or unpaid at cut off date
Where compulsory, the mortgage loan has a life insurance or risk
insurance policy attached to it
No mortgage loans have a legal maturity beyond 2089
100% of the portfolio relates to mortgage loans that have the
benefit of the NHG guarantee
The aggregate net outstanding principle amount of a mortgage
loan does not exceed EUR 1,00,000 and does not exceed the
maximum loan amount as stipulated in the relevant NHG
conditions2
The mortgage loans did not exceed 110% weighted average
original LTMV upon origination
Key Portfolio Characteristics (Provisional Portfolio1)
Characteristic
Value
Principal balance
EUR 1,574,318,425
Value of saving deposits
EUR 72,617,911
Net principal balance
EUR 1,501,700,514
Construction deposits
EUR 5,731,892
Number of loans
8,030
Number of loan parts
15,637
Average principal balance (borrower)
EUR 187,011
Weighted average current interest rate 4.81%
Weighted average maturity (in years)
35.5
Weighted average seasoning (in years) 2.54
Weighted average LTMV
95.1%
Weighted average LTMV (indexed)
105.1%
Weighted average LTFV
105.8%
Weighted average LTFV (indexed)
116.9%
% NHG
100%
1Figures relate to provisional pool which has a cut-off date of 31 December 2013. For more detail please refer to the Stratification Tables in the appendix.
2Before 1 July 2009 the limit for NHG mortgages was EUR 265,000. Between 1 July 2009 and 1 July 2012 the limit increased to EUR 350,000. From 1 July 2012 until
1 July 2013 the limit decreased to EUR 320,000. The current maximum loan amount is EUR 290,000 and is expected to decrease to €265,000 from 1 July 2014
onwards. Source: www.rijksoverheid.nl (Official website of the Dutch Government)
WAL and CPR Analysis
Overview

The WAL of the Class A1 and Class A2 Notes, assuming1
a CPR of [5.0]% and an Issuer call on the FORD (NPD
falling in Jan 20192), is [2.0] years and [5.0] years,
respectively
Selected Assumptions3


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

No regulatory call
Seller clean up call exercised at 10% (where no Issuer
call on FORD)
No mortgage loan is sold or required to be repurchased
No further advances
No debit balance on the PDL
WALs calculated on Actual / 360 basis
Savings and bank savings mortgage loans are assumed
to be annuity mortgage loans due to the participation
agreements
Linear mortgage loans are assumed to be annuity
mortgage loans
No enforcement notice has been served on the Issuer
and no Notes Event of Default has occurred
Note: Historical performance is not an indicator of future performance which may differ materially
Note: The WALs of the notes will be influenced by, among other things, the actual rates of repayment and prepayment of the
mortgage loans. The WALs of the Notes cannot be stated, as the actual rates of repayment and prepayment and a number of
other relevant factors are unknown. However, calculations of the possible WALs of the Notes can be made based on certain
assumptions, some of which are shown above. Source: Preliminary Prospectus
1 In addition to the assumptions contained within the Preliminary Prospectus
2 NPDs are on the 30th day of each January, April, July & October (Modified Following) until redemption
3 Please refer to the Preliminary Prospectus for the full set of assumptions
13
CPR
Source: Moody‟s Dutch Prime and NHG RMBS Indices and Aegon
Investor Reports
SAECURE Series Actual Annualized CPR
SAECURE Series Actual Annualized CPR 12 Month Moving Average
SAECURE 14 Assumed Annualized CPR
25%
20%
15%
10%
5%
0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
WAL Sensitivity to CPR and Issuer Call at FORD
Possible WAL of
Class A1 Notes
2.5%
Assuming
Issuer call
on FORD
[3.0] years
CPR
Possible WAL of
Class A2 Notes
[3.2] years
Assuming
Issuer call
on FORD
[5.0] years
Assuming no
Issuer call
Assuming no
Issuer call
[18.4] years
5%
[2.0] years
[2.0] years
[4.9] years
[13.4] years
10%
[1.1] years
[1.1] years
[4.5] years
[8.1] years
15%
[0.7] years
[0.7] years
[4.0] years
[5.6] years
20%
[0.5] years
[0.5] years
[3.5] years
[4.2] years
25%
[0.4] years
[0.4] years
[3.0] years
[3.3] years
30%
[0.4] years
[0.4] years
[2.6] years
[2.7] years
The Dutch Economy and
Housing Market
14
The Dutch economy
Highlights of the Dutch economy
Unemployment rate comparison
Source: Eurostat, CPB

Source: Eurostat
14%
One of the most stable and open economies in Europe
with one of the highest GDP per capita
►
►
►
►
Y-o-Y real GDP growth rate is forecasted to be 0.5% in
2014 and nearly 1% in 20151
Unemployment rate at 7.0% as of December 2013
Expected Sovereign debt of 75.6% of GDP and budget
deficit of 3.3% in 2014
International trade is key driver of economy and
future economic growth
UK
10%
8%
7,2%
6%
7.0%
6.7%
4%
1997
3.1%
2.4%
1.7%
1.2%
0
1999
2001
2003
2005
2007
2009
2011
2013
Source: OECD
US
2
Netherlands
UK
US
Eurozone
11.0%
10
5
1.7%
0
-2
-2.2%
-5.1%
-5
-4
-6
1
1990
15
12.0%
15
4
US
Trade balance (% of GDP)
Source: Eurostat
Netherlands
Eurozone
2%
Evolution of Y-o-Y real GDP growth rate
Eurozone
UK
12%
0%
1995
6
Netherlands
1994
1998
2002
2006
2010
2014
-10
1997
1999
2001
12014 and 2015 GDP growth rates are as forecasted by the Dutch Central Bank (DNB)
2003
2005
2007
2009
2011
2013
The Dutch economy (cont’d)
Sovereign debt (% of GDP)
Deficit (% of GDP)
Source: Bloomberg, IMF1
Netherlands
UK
Source: Bloomberg
Germany
France
Netherlands
US
Germany
France
US
108.1% 15
115
105
95
85
75
65
55
45
35
25
92.7%
92.6%
80,4%
74.5%
6.7%
6.3%
10
4.8%
5
4.1%
-0.2%
0
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
Gross national savings2 (% of GDP)
Netherlands
UK
Germany
-5
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
5 Year CDS Sovereign Spread (in USD - bps)
Source: Bloomberg, CIA
Source: Bloomberg
France
US
Netherlands
35
UK
Germany
France
US
250
30
25
25.5%
23.6%
20
18.5%
15
13.8%
10.8%
10
5
1993
16
UK
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
200
150
55.5
100
40.5
27.8
28
26
50
0
2008
2009
1IMF forecast figure for 2013
2GNS = GDP – Consumption – Gov Spending
2010
2011
2012
2013
2014
Dutch household financials
Overview
Source: Eurostat, Dutch Central Bank



The vast majority of household debt in the Netherlands is residential mortgage debt (EUR 645 bn as at Q3 2013) vs. remaining
consumer credit (EUR 25 bn as at Q3 2013)
The incentive for consumers to maximise their mortgage debt (tax incentives) results in relatively high gross debt to income levels
compared to other European countries
Dutch household wealth including pension assets far exceeds mortgage debt.
Dutch household debt and wealth composition
Source: Dutch Central Bank (EUR bn)
149
Consumer Credit
143
Residential Mortgage Debt
1059
970
26
27
28
1017
25
17
632
645
651
Pension Assets
91%
88%
86%
85%
77%
81%
82%
83%
Germany
1
France
645
333
344
360
373
380
2009
2010
2011
2012
2013 (Q3)
1Deposits
149%
139%
136%
133%
UK
Life Insurance
Deposits
615
242%
251%
248%
250%
Netherlands
151
743 25
Source: Eurostat
143
149
835
Gross debt-to-income ratio of households
0%
50%
100%
2009
include overnight deposits, deposits with agreed maturity and deposits redeemable at notice
2010
150%
2011
200%
2012
250%
300%
The Dutch housing market: Houseprice Index comparison
House price development (2000 values rebased at 100)
Source: ECB, S&P/Case-Shiller, Nationwide
300
Netherlands
UK
Ireland
Spain
US
250
205
200
157
151
127
114
150
100
50
0
2000 2001 2002 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
18

Moody‟s believes “Property prices in the Netherlands will be flat in 2014, with prices outside the Randstad and Zeeland being
softer than those in key urban areas”.1

S&P Expects Dutch house prices to stabilize in the course of 2014. In 2015 the first rise is expected at 2%. Forecasts are
based on improving economic conditions, greater fiscal policy certainty, and increased affordability of housing.2
1Moody’s: “Dutch RMBS: High loan-to-foreclosure values will be key default driver for 2014, but arrears will be relatively low”, 2014
2S&P: “Dutch RMBS Index Report Q4 2013: Severe delinquencies edge higher as the economy stabilizes”, 2014
The Dutch housing market: Supply
Supply dynamics
Building permits and newly built homes
Source: CBS, Ministry of Housing, VROM
Source: CBS
Supply in the Dutch housing market is relatively inelastic

►
Limited land available for housing
120
►
Regulations and planning permissions
100
Construction of new housing is at its lowest level since
1952


Construction unlikely to increase in 2014 in view of the
low number of building permits issued up to Nov. 2013

In order to reduce the structural housing shortage, the
Dutch Ministry of Housing has estimated that at least
80,000 new houses would be required annually
Increase in the Dutch Households
Building permit
Completed homes
80
60
40
20
0
Number of inhabitants per dwelling is decreasing
Source: CBS
Source: CBS
x million
8
x 1000
2,55
Households
Inhabitants per dwelling
2,50
2,45
7,5
2,40
7
2,35
2,30
6,5
2,25
6
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
19
2,20
1996
1998
2000
2002
2004
2006
2008
2010
2012
The Dutch Residential Mortgage
Market
20
Overview of the Dutch mortgage market
Mortgage lending market share in the Netherlands
Mortgage debt outstanding
(Q4 2013); Source: Land Registry (Kadaster)
Source: Dutch Central Bank
total mortgage debt outstanding (LHS)
EUR bn
year-on-year change (RHS)
700
60
600
50
500
40
400
30
300
20
200
10
100
0
0
Other
2008
2009
2010
2011
2012
Source: JPM (1 Jan 2010 – 1 Feb 2014)
Other
7%
Aegon
10%
Total = €62bn
ABN Amro
21%
Obvion
30%
NIB Capital
4%
Achmea
Hypotheken
bank
7%
BNP Paribas
3%
ING Bank Delta Lloyd NV
14%
2%
19,9%
18,3%
17,6%
10,3%
6,5%
5,6%
3,1%
1,5%
0,4%
16,7%
5%
10%
15%
20%
25%
2013
Dutch Prime RMBS Originators - Market Share
SNS Bank
3%
Rabobank
ING
ABN AMRO
Aegon
Obvion
Argenta
Delta Lloyd
SNS
Westland Utrecht
Other
0%
-10
2007
21
Thousands
Thousands
EUR bn
Overview of the Dutch mortgage market
Source: DNB, Land Registry (Kadaster)

In Q3 2013, total outstanding residential mortgage debt
in The Netherlands was approx. €645bn

New mortgage lending in Q4 2013 was €11.4bn

Mortgage originators in The Netherlands include banks,
insurance companies and specialized mortgage
originators

Securitization is a key funding source for Dutch
mortgage lenders
Key characteristics of the Dutch residential mortgage market

Predominantly prime, owner occupied

Very little buy-to-let, non-conforming and sub-prime

Mostly fixed rate mortgage loans

Mortgage loans are provided predominantly on the basis of income (LTVs are a less significant basis due to tax incentives)
Under
writing

“Full-doc” underwriting, no self certification of income

Industry wide credit database (BKR)
Code of
Conduct

The Code of Conduct aims to encourage lenders to compete on service and price rather than aggressive lending practices

Affordability calculation assuming 30 year amortizing loan regardless of product and interest rate risk

The NHG program is the public mortgage loan guarantee scheme supporting home ownership in the Netherlands

Every person in the Netherlands can obtain a guarantee from the Dutch state guaranteed non-profit organization (Stichting
WEW) subject to the applicable terms and conditions

Lenders can repossess and sell properties by public auction without a court order

Full recourse to the borrower. After foreclosure, any remaining debt remains enforceable until discharged in full

Strong social support and pension system
Products
NHG
Framework
22
Source: Aegon
Main mortgage products
 Interest-only mortgage loans – borrowers do not
make any principal repayments until maturity
Repayment
mortgage
loans
23
 Investment mortgage loans1 – borrowers do not
make any principal repayments but select an
investment policy, into which they pay a monthly
premium, which is expected to repay the
mortgage loan at maturity
 Annuity mortgage loans – fixed monthly
payments
 Linear mortgage loans – principal component
comprising an equal, fixed amount each month
1The
€ 250.000
Loan Amount
Savings
mortgage
loans
 Life mortgage loans – borrowers do not make any
principal repayments but have an insurance
policy, into which they pay a monthly premium,
which is either expected or guaranteed to repay
the mortgage loan at maturity
Example of a savings mortgage loan
Build up of linked
savings account
€ 200.000
€ 150.000
€ 100.000
€ 50.000
€0
0
After January
1st 2013
 Savings mortgage loans – borrowers do not make
any principal repayments but instead make
payments into a savings account with an
insurance company / bank
Prior to January 1st 2013
Interest-only
mortgage
loans
origination of Investment mortgage loans has been discontinued as of December 2010
60
120
180
240
Months
300
360
Loan amount at
risk after savings
account taken
into
consideration
Mortgage loan structure
Costs
@ 4% = 4
Transfer Tax
@ 2% = 2
Taxes and other costs
related to the
property purchase can
also be funded by the
mortgage loan
Market
Value
Property
= 100
Savings
Mortgag
e Loan
Part
= 56
Required for
property
purchase
= 106
Annuity
Mortgage
Loan
= 105 2
Annuity
Mortgage
Loan
= 104 2
Interest
Only
Mortgag
e Loan
Part
= 50 1
LTMV = 106 / 100 = 106%
24
Before
1-1-2013
As per
1-1-2013
The total
mortgage loan
may consist of
multiple loan
parts
Additional
protection
through
disability /
term life /
accidental
death /
household
insurance
policies
As per
1-1-2014
1As of Aug 2011 a maximum of 50% of market value is allowed to be interest only, remainder
2The maximum allowable LTMV will decrease by 1% per annum to arrive at 100% in 2018
needs some form of repayment or capital savings
Code of Conduct: Industry self-regulation
Overview of the Code of Conduct

The Code of Conduct is endorsed by Aegon as well as
almost all banks, savings banks, mortgage banks,
insurance companies, pension funds and building
funds in the Netherlands
►
►

►
25

Detailed affordability calculations
►
Self regulation of the industry in consultation with the
government
►
Originally established in 2001
The Code of Conduct provides guidelines and best
practices for the origination of mortgage loans:
►
Selected Code of Conduct guidelines
Transparency, information, suitability of mortgage
loans for customer
Underwriting criteria: LTV, affordability

Ensures that lenders compete on service and price,
rather than aggressive underwriting

The Code of Conduct aims to encourage mortgage
lenders to stick to the specified criteria despite
consumer pressure
►
Regardless of product type, calculates monthly mortgage loan
payments assuming a 30 year annuity loan (no benefit for interest
only)
If fixed interest term <10 years, assumes a mortgage loan rate of
5.00% (Aegon‟s current1 10 year rate for NHG mortgage loans is
4.00%, and 4.75% for non NHG mortgage loans with maximum LTV)
References DTI tables from an independent national foundation to
determine maximum loan amount

LTV ≤ prior to 2013 approx. 106%2, starting January 1st 2013, the
maximum LTV will decrease with 1% per year until the maximum
LTV is 100% as of January 1st 2018

Interest-only part: From August 2011 max 50% of market value,
remainder needs some form of repayment. As per January 1st 2013,
new mortgage loans must repay according to, or faster than a 30year annuity loan to be eligible for tax deductibility of interest
payments. Existing mortgage loans will be grandfathered, based on
their current fiscal treatment.
Source: Aegon, NVB, GHF, NIBUD, Fitch (EMEA Criteria Addendum Netherlands, March 2011)
1As of 17 January 2014
2On 1 July 2011 the Dutch government reduced the transfer tax from 6% to 2% to encourage housing market activity. This reduced the LTV limit in the Code of
Conduct from 110% to 106%. The current LTV limit is 104% as of 1 January 2014.
Affordability calculation based on the Code of Conduct
Affordability tables provided by NIBUD

Mortgage lenders closely follow the affordability
recommendations provided by Nationaal Instituut
voor Budgetvoorlichting (“NIBUD”)
►
Independent Dutch foundation
►
Promotes the rational planning of family finances

26
Mortgage loan rate
4.501%-5%
17.5%
5.001%5.5%
18.0%
>5.5%
18.5%
19,500
20,000
17.5%
18.0%
18.5%
19.0%
19.5%
For each income bracket, the part of the gross
income that can be paid on a mortgage loan is
calculated
20,500
…
18.5%
19.0%
19.5%
20.0%
20.5%
…
…
…
…
…
55,000
26.0%
27.0%
28.0%
29.0%
30.0%
58,000
26.5%
27.5%
28.5%
29.5%
30.5%
61,000
…
27.0%
…
28.0%
…
29.0%
…
30.0%
…
31.0%
…
75,000
29.5%
30.5%
31.5%
32.5%
33.5%
77,000
29.5%
31.0%
32.5%
34.0%
35.5%
79,000
…
30.0%
…
31.5%
…
33.0%
…
34.5%
…
36.0%
…
96,000
31.0%
32.5%
34.0%
35.5%
37.0%
110,000
31.5%
33.0%
34.5%
36.0%
37.5%
For example, a borrower with a gross income of EUR
55,000 and a mortgage loan with an interest rate of
4 to 4.5% can use 27.0% of his income on interest
and principal repayments (based on a 30 year
annuity)
NIBUD‟s calculations take into account household
expenditures (e.g. electricity, gas, water, local taxes,
telephone/internet, insurances, transport, school
costs for children), other fixed costs and reservation
expenditure as well as tax aspects of a mortgage
loan
Lenders can obtain other financial obligations of
applicants in the national credit register (“BKR”)
Gross Income
4.001%4.5%
17.0%
Affordability tables are included in the Code of
Conduct
►

Percentage of gross income that can be used for mortgage loan payments
<=4%
16.5%
►

For borrowers below 65 years of age

Average income 2013: € 33.000
Source: Aegon; “Een betaalbare hypotheek, nu en straks.” NIBUD, 2013; NIBUD, Affordability percentages, 2014
Detailed income underwriting is typical for Aegon and the
Dutch market
Underwriting Process: Stage 1 “Pre-approval”


Application tested against Aegon‟s standard criteria,
databases for credit history and fraud and, where
necessary, subject to an additional review by a credit
committee


If successful, the application is “pre-approved” and a
loan offer is issued to the customer, which remains
contingent on the provision of the necessary backing
documentation
Underwriting Process: Stage 2 “Final approval”

Aegon key documentation requirements (similar to market
practice)

Aegon checks underlying documentation provided by
borrower
Following final approval, notarial documentation and
mortgage loan registration can be completed, and the
loan can be disbursed on the day the trade of the
property takes place
Customer data:
►
Extract of credit register (“BKR”) and fraud register (“SFH”)
►
Recent pay slip
►
Employment contract
►
Affordability calculation
►
Banking details for direct debit
►
Proof of residence (land registry and deed)
Self-employed:
►
Income: avg. net profit of last 3 years with max most recent year
►

IB60 form (formal income statement provided by the Dutch Tax
Authorities): at least 3 tax returns required
Property related:
►
Appraisal report, and/or
►
Property tax assessment, and/or
►
Building and purchase contract
Quality control & audit
27


Aegon checks the completeness of files and the consistency of documents
Aegon processes integrate a strict four eye principle

Further controls may be made as part of a quality control program to assess the credit risks associated with origination and underwriting

A file sample is typically reviewed by individuals independent from the underwriting team (internal or external )
Source: Aegon; Fitch, “Underwriting Practices and Criteria in the Dutch Mortgage Market” 19 October, 2007
Detailed income underwriting typical for the Dutch market
(cont’d)
Overview of the national credit register (“BKR”)
Source: BKR as of November 2012




28
BKR is a non-profit organization which was founded in 1965 by the Dutch finance industry to administer the Central
Credit Information System (“CKI”)
►
CKI stores data on loans and credit facilities
►
BKR informs affiliated organizations on the credit history of consumers
►
All of the major Dutch mortgage loan lenders are registered
Lenders can obtain data on a consumer‟s credit history from BKR, including details on credit cards and auto loans
CKI stores data on negative payment events and bankruptcies
►
Records remain in the database for 5 years
BKR shares credit histories with the national credit registers of Germany, Italy, Belgium and Austria
The social security infrastructure in the Netherlands
as of 1 February 2014
Employee
Insurance
Schemes
National
Insurance
Schemes
Other

Unemployment Insurance Act
(WW)

Sickness Benefits Act (ZW)

►
►

Work and Income according to
Labor capacity Act (WIA)
►
Payable from the first day of unemployment
One month benefit for every year of employment history (minimum of 3 and maximum of 38
months*)
Unemployment benefit equals 75% of the last-earned salary during first 2 months and 70%
during the rest of the unemployment period (with a maximum of 38 months*) .
Up to a cap ~ €50,000 per annum

Employer Pension Plans

General Old Age Pensions Act
(AOW)



Exceptional Medical Expenses
Act (AWBZ)
Usually both basic pension (AOW) and employment pension received
AOW: gross annual amount (including holiday allowance) is €14,034 / €9,716
(single/co-habiting per person) as of 1 February 2014


Surviving Dependants Act (ANW)
Employment pension plans are in addition to AOW, and can take various forms,
usually calculated as a percentage of the average or last salary earned over a career

Healthcare Insurance Act
►
►
Currently most pension plans are defined benefits

AOW is a funded scheme

Basic medical insurance is a legal obligation and insurers are required by law to accept
anyone who registers
Cost of basic insurance is now approx. €100 per month
Covers medical care incl. GP, hospitals, medical specialists, hospital stays, various
medical appliances and medicines, ambulance transport, paramedical care
Generally medical expenses are covered 100% except there may be deductibles for
selected expenses



29
All employees under the age of 65 who meet past service requirements and lose their
job receive unemployment benefits
Sources: Ministerie van Sociale Zaken & Werkgelegenheid, A short survey of Social Security in the Netherlands, July 2011; Uitvoeringsinstituut
Werknemersverzekeringen (UWV); Sociale Verzekeringsbank (SVB); Kiesbeter (www.kiesbeter.nl); “Bruggen slaan – Regeerakkoord VVD PVDA” 29 October 2012
* From 1 July 2016 the maximum term of 38 months for unemployment benefit will be gradually reduced to 24 months from 2019 onward.
* Pensionable age will be gradually increased from 65 to 67 as of 1 January 2014
Tax incentives are the main reason behind higher LTVs
Double tax incentive for mortgage loan borrowers 1
Mortgage loan
interest expense
Savings
interest income
Interest on the mortgage
loan on a borrower‟s
residence is deducted
from taxable income
Income on savings/
insurance / investment
policies used to repay
“interest-only” mortgage
loans is tax free
Rational borrower behaviour in the Netherlands:

Maximise amount of the mortgage loan secured on prime residence

Take out non-amortizing mortgage loans with long maturities

Accumulate principal in savings, investment or insurance policies
Tax system is a key driver of mortgage loan
characteristics:

High average LTV levels, before taking into account the related savings,
investment or insurance policies

Significant collateral in insurance contracts vs. scheduled redemptions

Long mortgage loan terms
The Dutch tax incentives in perspective

This type of tax deduction has been in effect in one form or another since 1893. Some changes have been made in the last
years:

Reduction of the tax benefit by permitting tax deductibility only for the first 30 years of the mortgage loan term

Interest payable on equity extracted in a refinancing is not deductible

In June 2011 the government reduced the transaction tax from 6% to 2% to encourage activity in the housing market.

In addition, the budget for 2013 as agreed upon by the coalition in October 2012 contains some additional provisions that will
affect the interest deductibility, as further described on the next slide
Due to tax incentives, Dutch lenders put greater emphasis on strict income underwriting than on LTV ratios. As of
January 2013, the maximum LTV for new mortgage loans is decreasing by 1% p.a. 100% in 2018. In 2014 the
maximum LTV is 104%
30
1Tax
incentives remain in place for existing mortgages under modified government policy
Source: Aegon
Recent policy developments impacting the housing
Tax deductibility
►
►
►
New mortgages originated after January 1st 2013 only benefit from tax deductibility if they are fully amortizing
For existing and new mortgage loans from 2014 the maximum deduction rate will be reduced from 52% to 42%, in steps of a halfpercent per
year
The problem of residual debt remaining after property sales will be effectively tackled by making interest payments on residual debt temporarily
tax-deductible (for a maximum of ten years)
Mortgage lending policies
►
The favourable loan facility for starters of the Stichting Volkshuisvesting Nederland (Dutch Foundation for Housing ) was expanded to EUR 100
million
►
From 1 January 2013 for new mortgages only amortizing loans are eligible for NHG
►
Maximum LTV allowance is 104% in 2014 will be decreased by steps of 1% per year to 100% in 2018
►
Penalty free prepayment up to the current WOZ-valuation (from November 1st 2013 to January 1st 2015)
Relevant tax code amendments
►
Property transfer tax will be kept at the reduced level of 2%
►
The top bracket income tax will be lowered from 52% to 49,5%
►
►
The 42% bracket will be lowered to 38%
►
►
Lowering in small steps starting in 2018 until 2042
One-off tax-free donation cap raised from €51,407 to €100,000 (can only be used for purchase or rebuilding of house or prepayment of
mortgage)
►
31
From 2018 in small steps over a 21 year period
Donations now also eligible for others than own children (donation changes applicable from October 1st 2013 to January 1st 2015)
Sources: Aegon Leven, www.rijksoverheid.nl
Mortgage loan foreclosures in the Netherlands

In the fourth quarter of 2013 the number of foreclosures amounted to 554 compared to 669 in the same period in 2012

There were 1,863 forced sales in 2013 (≈ 0.046% of total dwellings) compared to 2,488 forced sales in 2012 (≈ 0.061% of total
dwellings)

In its preliminary annual results for 2013 NHG states that 65% foreclosures were divorce-related and 17% were driven by
unemployment
Property foreclosures
Source: Land Registry, CBS
600
Number of properties foreclosed per month (LHS)
% of total number of dwellings (RHS)
0,0200%
500
0,0150%
400
300
0,0100%
200
0,0050%
100
0
2005
32
0,0000%
2006
2007
2008
2009
2010
2011
2012
2013
The NHG mortgage loan guarantee

NHG (Nationale Hypotheek Garantie) refers to the public mortgage loan insurance scheme supporting home ownership in the
Netherlands

Every person in the Netherlands can obtain a guarantee from the Stichting WEW, a Dutch state guaranteed non-profit
organization, for a mortgage loan amount of up to €290,0001,2 relating to a residential house purchase of up to €273,585
Guarantee coverage: Mortgage loans originated prior to 31 December 2010 are 50% guaranteed by the Dutch state and 50% by the
municipalities. Those originated as of 1 January 2011 are 100% guaranteed by the Dutch state
►
NHG
Guarantee &
conditions


►
Cost: up-front payment of 100bps of the loan amount as of 1 January 2014
►
Interest rate discount: approx. 10 to 60bps p.a. depending on LTV
►
Since 1 January 2013 NHG is only available for amortizing mortgage loans
►
For those loan parts originated as of 1 January 2014, the originator is accountable for 10% of the realized loss.
The mortgage loan lender is responsible for ensuring that the guarantee application meets NHG conditions
►
If the NHG conditions are not satisfied, the lender may not be fully covered by the guarantee
►
The NHG guarantee is based on an annuity amortization profile (30 year term)
The NHG scheme has specific rules for the level of credit risk that will be accepted
The creditworthiness of the applicant must be verified with the National Credit Register (BKR)
►
Stichting
WEW

If accepted, the Stichting WEW registers the mortgage loan and establishes the guarantee

The digitalised underwriting process is beneficial to the WEW claim acceptance rate

NHG loans predominantly originated since the start of the economic crisis, 80% of origination in first half of 2013 vs. 54% i n
2008

In 2013 a total of 85,200 buyers have used the NHG mortgage loan guarantee. Within the € 290,000 limit more than 90% of
buyers have bought with NHG guarantee

In 2013 the capital base of the NHG guarantee decreased by € 8 million to € 778 million. This was in line with expectations

Moody‟s and Fitch have assigned Stichting WEW a Aaa/AAA rating3
1For
comparison, average house price in The Netherlands is € 215,388 Source: Land registry as of December 2013
€290,000 limit is in place since 1 July 2013 and will be reduced to €265,000 as of July 1 st 2014 and to €225,000 as of 2016 (expected)
3Credit rating accurate as of 3 March 2014
2The
33
NHG triggers, requirements and foreclosure process
NHG Guarantee Triggers:
-Unemployment
-Divorce
-Disability for work
Gather recent
income data
Income test run
(according to NHG
Conditions)
Compare maximum
cost of living with
current cost of living
Decision NHG
Borrower can stay in current house
and is able to bear costs
Remission or restructuring (part) of
loan, so borrower can stay in current
house and is able to bear costs.*
Start sales process
Private sale: minimum
proceeds of 95% of the
appraised value (market value)
Sales process
Auction: approval from NHG
needed, no minimum proceeds
required
34
* On a case by case basis Aegon uses Budget Coaches in order to manage / reduce arrears or losses
The Dutch RMBS Market in
Perspective
35
The Dutch RMBS market
Overview
Source: Moody’s, AFME and JP Morgan

One of the main primary issuance investment opportunities within the European securitization market

AAA rated Dutch RMBS spreads have shown a fair degree of stability between July 2010 and December 2012, but have been
tightening since the beginning of 2013 due to limited supply

Asset performance has remained strong through the credit crisis
►
Cumulative net loss rates of Dutch NHG RMBS for Q3 2013 remain low at approx. 2bps. For Dutch prime RMBS this was 9bps.
►
Dutch NHG RMBS recorded a 60+ day delinquency rate in October 2013 at 65bps versus 97bps for Dutch prime RMBS
CPRs have fallen from pre-crisis average of approx. 17% (‟06) to approx. 4.1% in September 2013 compared to UK RMBS where
CPRs have fallen from pre-crisis of approx. 36% (‟06) to approx. 17.4% in August 2013

Generic AAA ABS market spreads
Source: JP Morgan
,450
Dutch RMBS AAA FL 5 Yr
,400
UK RMBS AAA Euro FL 5 Yr
,350
,300
,250
,200
,150
,100
74bps
55bps
,50
jan-07
36
jul-07
jan-08
jul-08
jan-09
jul-09
jan-10
jul-10
jan-11
jul-11
Historical performance is not an indicator of future performance and may differ materially
jan-12
jul-12
jan-13
jul-13
jan-14
Performance comparison of Dutch RMBS
Moody’s Outlook for Dutch RMBS*
60+ day Delinquencies
Source: Moody‟s, Dutch Prime and NHG RMBS Indices,
September 2013, Moody‟s, UK Prime RMBS Indices, August
2013 and Moody‟s, Jumbo Mortgage Credit Indexes, May 2013
Source: Moody‟s, Dutch Prime and NHG RMBS Indices,
September 2013

Moody's collateral outlook for Dutch RMBS is stable

60+ day delinquencies of prime RMBS showed an increase
from 0.76% in September 2012 to 0.97% in September
2013. For NHG RMBS the index increased from 0.48% to
0.65%

The cumulative defaults index for prime RMBS showed an
increase from 0.35% in September 2012 to 0.37% in
September 2013. For NHG RMBS it increased from 0.15%
0.28%

The cumulative losses index for prime RMBS remained
stable, widening slightly to 0.09% in September 2013 from
0.07% in September 2012. For NHG RMBS it increased
from 0.01% to 0.02%
10.73%
2.52%
0.97%
37
* Numbers based on Dutch Prime and NHG RMBS Indices
Historical performance is not an indicator of future performance and may differ materially. Market characteristics may differ materially between
jurisdictions and statistical data across markets may not be entirely comparable.
Prime RMBS Cumulative Losses
Cumulative Losses (bps)
Dutch Prime
UK Prime
US Prime
Typical annual excess spread p.a. in Dutch RMBS
225
200
200
175
150
125
100
75
50
43
50
25
9
0
2004
38
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Aegon; Moody’s, Dutch Prime and NHG RMBS Indices, September 2013, Moody’s, UK Prime RMBS Indices, August 2013 and Moody’s, Jumbo Mortgage Credit
Indexes, May 2013
Note: Historical performance is not an indicator of future performance and may differ materially. Market characteristics may differ materially between jurisdictions and
statistical data across markets may not be entirely comparable
Prepayment rates

Dutch prepayments are relatively insensitive to interest rates
due to high prepayment penalties:
►
►
►

39
The prepayment penalties are set at levels that compensate the
lender for the loss of interest income;
The penalty is generally equal to the PV of the interest rate
differential over (1) the time to maturity of the loan or (2) the
time to the next interest rate reset date
Prepayment without prepayment penalty is possible under
special circumstances:
►
When the property is sold;
►
If the property is destroyed;
►
When the borrower has deceased;
►
At an interest-reset date
►

Annual partial prepayments are typically only possible up to 10%
of outstanding principal amount without penalty;
For the loan balance in excess of the WOZ value of the property
(temporary arrangement from November 1st 2013 to January
1st 2015)
Prepayment rates
Source: Moody‟s, Dutch Prime and NHG RMBS Indices, September
2013, Moody‟s, UK Prime RMBS Indices, August 2013 and Moody‟s,
Jumbo Mortgage Credit Indexes, May 2013
80%
Dutch Prime (CPR)
70%
US Prime (CPR)
UK Prime (TRR)
60%
50%
40%
30%
20%
23.1%
17.4%
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Because of the historically low mortgage loan interest rates, the
Dutch mortgage loans increasingly have longer fixed interest
rate periods (>10 years)
Source: Aegon
Historical performance is not an indicator of future performance and may differ materially. Market characteristics may differ materially between
jurisdictions and statistical data across markets may not be entirely comparable
4.1%
Transactions comparison: Selected publicly placed Dutch and UK RMBS
Item
Deal name
Closing date
Originator
Portfolio stratification
Avg. current (market)
LTV
% IO
% fixed interest
% in arrears
% self employed
Max regional
concentration
Dutch RMBS
SAECURE SAECURE SAECURE SAECURE Storm Dolphin Storm
Storm
Dutch
14
13
12
11
2014–I 2013-2 2013-IV 2013-III MBS XVIII
[Mar-14]
Aegon
Mar-13
Aegon
Dec-12
Aegon
May-12
Aegon
95,1%
35.7%
96.7%
0.0%
0.0%
21.0%
ZuidHolland
92.5%
36.9%
98.3%
0.0%
0.0%
20.8%
ZuidHolland
84.5%
47.4%
91.7%
0.0%
3.5%
19.2%
ZuidHolland
81.5%
49.9%
91.9%
0.0%
6.5%
18.6%
ZuidHolland
Feb-14
Oct-13
Obvion ABN Amro
95.1%
57.8%
91.3%
0.0%
5.7%
20.5%
NoordBrabant
72,8%
54,9%
95,2%
0.0%
4.5%
27.1%
ZuidHolland
UK RMBS
Albion 2
Lanark
2013-1
Sep-13
Obvion
May-13
Obvion
Feb-13
Oct-13
Jul-13
Jun-13
NIBC Yorkshire BS Leeds BS Clydesdale
85,6%
59,9%
89,1%
0.0%
6.8%
20.3%
NoordBrabant
85.5%
62.5%
88.6%
0.0%
5.2%
19.7%
NoordBrabant
75.5%
62.4%
83.5%
0.0%
7.0%
21.3%
ZuidHolland
% NHG
100%
100%
62%
45%
32.8%
0.0%
33.2%
32.7%
7.5%
Portfolio data
Original balance (in mln)
€ 1,502 € 1,233 € 1,468
€ 721
€ 1,064 € 29,928
€ 745
€ 1,170
€ 526
Average loan (borrower) € 187,011 € 191,172 € 193,464 € 193,974 € 191,608€ 185,945 € 199,410 € 196,850 € 164,583
40
Brass 3
70.2% 66.73%
37.3% 19.38%
61.2% 67.93%
0.0%
0.0%
5.4% 14.07%
56.3% 26.88%
South East South East
62.0%
31.3%
31.8%
2.75%
10.1%
24.2%
Yorks/
Humb
£1,209
£326
£191,045 £133,971
£3,727
£95,383
WA interest rate
Avg seasoning (yrs)
Avg time to maturity in
yrs
Final Legal Maturity Date
4.8%
2.5
35.5
4.8%
1.73
40.8
4.8%
2.9
41.1
5.0%
3.3
40.5
4.43%
4.3
23.7
4.7%
7.6
20.9
4.5%
3.9
23.8
4.4%
4.1
23.7
4.8%
9.1
20.1
3.5%
1.6
21.7
3.58%
1.17
22.54
3.66
3.8
16.76
Dec-89
Nov-93
Jul-92
Oct-89
Mar-49
Sep-99
Oct-53
Aug-53
Feb-45
Apr-51
Mar-56
Dec-54
Credit enhancement
AAA subordination
Reserve fund
Total Credit enhancement
Excess spread margin
9.0%
1.0%
10.0%
0.50%
8.9%
1.0%
9.9%
0.50%
7.00%
3.00%
10.00%
0.50%
7.50%
1.00%
8.50%
0.50%
6.00%
1.00%
7.00%
0.50%
7.00%
1.10%
8.10%
0.50%
6,00%
1.00%
7.00%
0.50%
6.00%
1.00%
6.00%
0.50%
5.03%
0.51%
5.54%
0.50%
9.75%
2.70%
12.45%
1.20%
8%
3%
11%
2%
14.00%
3.29%
17.29%
1.66%
Source: Prospectuses
Selected Dutch RMBS – Spreads at issuance – WAL ~ 2 years
Spreads at issuance – Transactions with WAL ~ 2 years
130
Arena 2011-II
Dutch MBS BV XVI
110Arena BV 2011-1
STORM 2011-IV STORM 2012-1
SAECURE 10
Phedina 2011-1
STORM 2012-2
Orange Lion 2011-6
STORM 2012-3
90
STORM BV 2011-III Dutch MPL IX
DMPL X STORM 2012-4
DUTCH MBS XVII
70
HERMES 18
Arena 12-I
SAECURE 12
50
STORM 2013-I
STORM 2013-IV
STORM 2013-II
30
2011
41
SAECURE 13 NHG
2012
2013
2014
Selected Dutch RMBS – Spreads at issuance – WAL ~ 5 years
Spreads at issuance – Transactions with WAL ~ 5 years
190
170
Dutch MBS BV XVI
Arena 2011-II
STORM 2012-3
STORM 2011-IV
150
Orange Lion 2011-6
130
Dutch MPL IX
SAECURE 10
Phedina 2011-1
STORM 2012-1
DMPL X
STORM 2012-2
SAECURE 11
HERMES 18
STORM 2012-4
STORM 2011-III
Dolphin 12-II
STORM 2012-5
110
SAECURE 12
Orange Lion 2013-8
Arena 2012-I
Lunet 2013-1
STORM 2013-IV
Strong 2011-1
90
Storm 2014-1
Phedina 2013-I
STORM 2013-I
Dolphin 2013-I
Storm 2013-II
Storm 2013-III
SAECURE 13 NHG
70
2011
42
2012
2013
2014
2015
Outstanding net balance of SAECURE RMBS transactions
10
9
SAECURE 1*
SAECURE 2*
SAECURE 3*
SAECURE 4*
SAECURE 5*
SAECURE 6*
SAECURE 7
SAECURE 8 NHG
SAECURE 9
SAECURE 10
SAECURE 11
SAECURE 12
SAECURE 13 NHG
8
EUR (Billions)
7
6
5
4
3
2
1
0
2006
43
2007
2008
2009
2010
2011
* Repaid at FORD
Note: Historical Performance is not an indicator of future performance which may vary materially
Source: Investor Reports SAECURE transactions
2012
2013
Performance of SAECURE RMBS transactions
Overview
Arrears (>=2months) across all SAECURE transactions
Source: Investor Reports, (bps of curr. balance) (2006 – 2013)

Current arrears performance of outstanding SAECURE
transactions is very strong

Investors are referred to the Prospectus of each transaction
for initial portfolio details

The portfolios securitised in prior SAECURE transactions are
representative of Aegon‟s total portfolio of mortgage loans
Due to an increased private sales period the arrears amount in
the 6 months bucket is increasing, while the number of
arrears in this bucket is showing a slight increase

3,0
2 <= 3 monthly payments
> 6 monthly payments
2,0
1,0
0,0
2006
2007
2008
2009
2010
2011
2012
2013
Arrears across all SAECURE transactions
Source: Investor Reports (December 2013)
44
Total arrears amount
(in bps of net
current balance)
SAECURE
13 NHG
<= 1 monthly payment
0.2
0.2
0.1
0.3
0.4
0.2
0.2
0.3
0.7
1.4
0.6
0.7
0.6
0.1
0.2
0.1
0.2
0.2
0.1
0.3
0.3
0.5
1.1
0.7
0.4
0.1
0.1
0.2
0.1
0.2
0.2
0.2
0.3
0.2
0.5
1.0
0.6
0.4
0.1
0.1
0.1
0.3
0.2
0.3
0.2
0.2
0.2
0.2
0.5
0.5
0.4
-
0.1
0.3
-
0.2
0.5
0.5
0.4
0.4
0.3
0.6
0.5
1.0
0.2
> 6 monthly payments
0.1
0.3
0.5
1.8
1.4
1.3
2.1
1.5
1.9
0.9
0.5
0.6
-
Total arrears amount
Total Portfolio
(net principal) (in mln €)
0.7
1.3
1.1
3.0
3.0
2.6
3.4
3.0
4.1
5.4
3.4
3.5
0.9
1,204
1,398
672
1,379
729
1,233
908
1,176
397
333
453
Note: Percentages shown in the table are rounded to 2 decimal places. As such, the total arrears percentage may appear to be below or
above the sum of all arrears buckets
Note: SAECURE 1 – 6 called at respective FORDs. Values shown in the table above for these transactions are as of FORD
Note: SAECURE 7, 8, 9, 10, 11, 12 and 13 as of end of 2013
375
350
SAECURE SAECURE SAECURE SAECURE SAECURE SAECURE SAECURE SAECURE SAECURE SAECURE SAECURE SAECURE
12
11
10
9
8 NHG
7
6 NHG
5
4
3
2
1
Performance of SAECURE RMBS transactions (cont’d)
No. of defaulted loans across all SAECURE transactions
Source: Investor Reports (2006 – 2013)
Recovery

70
60

39
50
40
30
41
20
26
35
10
7
0
2006
45

29
15
2007
2008
NHG RMBS
30
17
9
7
8
17
33
13
2009
2010
2011
2012
RMBS (non 100% NHG)
Recovery Rate on NHG RMBS (SAECURE 6, 8 and
13) improved from 93% at the end of 2012 to 96%
at the end of 20131
Recovery Rate on other RMBS (SAECURE 7,9 10,11
and 12) improved from 81% at the end of 2012 to
83% at the end of 2013
The average loss per mortgage loan for both NHG
and non-NHG in 2012 was EUR 38,000 vs. EUR
26,500 in 2013. These are the average losses
before submitting a claim to NHG or similar
recovered amounts
2013
Loss statistics across all SAECURE transactions
Loss statistics across all NHG SAECURE transactions
Saecure - Net losses
Outstanding net Total net losses Total net
balance (EUR
(EUR mln)
losses (bps of
Year
mln)
net balance)
Saecure - Net losses (100% NHG RMBS)
Outstanding net Total net losses Total net
balance (EUR
(EUR mln)
losses (bps of
Year
mln)
net balance)
2006
5,463
1.51
2.76
2006
2,000
2007
4,339
1.61
3.71
2007
1,905
0.10
0.54
2008
3,714
1.37
3.68
2008
1,748
0.12
0.68
2009
3,356
1.18
3.51
2009
1,590
0.08
0.53
2010
6,148
1.91
3.11
2010
2,916
0.05
0.18
2011
6,580
0.90
1.37
2011
2,727
0.03
0.12
2012
6,532
1.14
1.74
2012
2,559
0.19
0.75
2013
7,523
1.50
1.99
2013
2,437
0.06
0.24
1SAECURE 6 called at 27 august 2013. Recovery rates for Saecure 6 are based on end of July 2013 figures
-
-
Aegon’s Residential Mortgage
Loan Origination, Underwriting
& Servicing
46
Aegon NL organization

Aegon NL consists of Business Lines: Business Line Life & Mortgages, Business Line Pension and Business Line Non-Life.

Aegon Business Line Life Insurance, the servicer of the mortgage loans, has a team of 140 people (121 FTE) located in
Leeuwarden (91 front office and 30 back office)
Aegon NL management structure (simplified)
Aegon Business Line Life - management structure*
Aegon Business Line Life & Mortgages
Aegon NL
Mortgage Lending
Staff
Business Line
Life & Mortgages
Business Line
Pension
Business Line
Non-Life
Servicedesk
Applications
and
Underwriting
Servicing 1
Servicing 2
* Also simplified: Only department of Mortgage Lending is represented here.
47
Source: Aegon
Aegon NL mortgage lending organization
Marketing NL
Sales
BL Life
Product development
Marketing department
Distribution and Sales
Sales department
Application processing
Credit assessment and
processing department
Financial Services
Distribution partners
Accepting and monitoring
new brokers and
distribution partners
Debt collection
Service unit
Registration of loans
Arrears management
Administration loans
Commercial administration
Early
arrears
Late
arrears
Foreclosure processing
Foreclosures department
48
Source: Aegon
Aegon NL mortgage lending organization (cont’d)

Aegon NL has two entities for its mortgage lending business, Aegon Hypotheken and Aegon Leven, which offer its mortgage loans under the
“Aegon” brand name mainly to Dutch citizens with collateral only in the Netherlands
►
►
►

Aegon Hypotheken B.V. has outsourced all origination and servicing activities to Aegon Leven. Aegon Hypotheken is fully embedded in Aegon‟s global
risk- and capital management framework
The mortgage lending business is a powerful cross-selling tool for life insurance products. With approx. 40% of all sold mortgage loans, Aegon also
sells an insurance product
All mortgage loans are sold through intermediaries
►
►
►
►
49
As of the 1st of April 2011 all newly originated mortgage loans are underwritten by Aegon Hypotheken B.V., a 100% subsidiary of Aegon Nederland
N.V.
Only professional regional and national parties who adhere to Aegon‟s strict standards and requirements are used as intermediaries
The advantage of using intermediaries is to increase the market range and use parties who have strong regional knowledge. Aegon uses a wide
range of intermediaries (self-owned as well as other independent financial advisors). All underwriting activities are performed by Aegon NL
As of 1 January 2013, new legislation is in force. Unlike before, intermediaries are no longer allowed to receive commissions from the underwriter,
instead they will have to charge their fees directly to the client
Mortgages are not sold “On-line” but underwriting process at Aegon has been digitalized which lead to efficient internal and client process.
Application for withdrawal of construction deposits can be done online. Clients pay their monthly mortgage by “direct debit”
Source: Aegon
Aegon NL mortgage lending organization (cont’d)

The mortgage loans are widely distributed over the whole of the Netherlands and are also well diversified by borrower age
►
►
50
Aegon has defined the following as its key target groups for the sale of mortgage loans: young customers buying their first home (< 35
years), customers moving to another home, customers staying in their current home (refinancing and increased mortgage loans) and to
a lesser degree senior citizens
Interest rate arrangements range from 1-month for floating rate mortgage loans to up to 30 years for fixed rate mortgage loans

Due to its long history in secured funding, Aegon has good access to funding markets

All mortgage related processes are periodically reviewed and are regularly audited (including SOX compliance)
Source: Aegon
Successful Dutch mortgage loan operation




The mortgage lending business offers Aegon substantial
cross-selling opportunities and synergies
►
Cross-selling of life-insurance products
►
Natural investment for the life insurance book of Aegon
Aegon NL‟s portfolio of prime residential mortgage loans
amounted to €24.5bn at the end of the fourth quarter
2013
In 2013, Aegon increased their portfolio by €2.3bn
through a combination of new mortgage loans and lower
prepayment levels
Aegon was very successful in minimizing its lending losses
and had a loss rate of 1.99bps across all SAECURE
transactions in 2013
►
►
Evidence of its strict arrears and collection procedures
Source: Aegon (2006 – 2013)
Non NHG Mortgage Loans (LHS)
NHG Mortgage Loans (LHS)
1
Outstanding SAECURE securitization program at year-end (RHS)*
(€ bn)
(% of
total
book)
25
50%
20
40%
15
30%
10
20%
5
10%
0
0%
2006
The recovery rate on defaulted loans as per ultimo 2013 is
96% for NHG RMBS (SAECURE 6, 8 and 13)1 and 83% on all
other RMBS (non 100% NHG)
Source: Aegon
51
Mortgage loan portfolio
2007
2008
2009
2010
2011
2012
2013
*SAECURE 6 was repaid at FORD (August 2013) and is not included in the outstanding
SAECURE programm at end of 2013.

2013 „Gouden Spreekbuis Award‟

2013 Nominee for Dutch Securitization Award 2013

2012 Performance Award Mortgages and „Zilveren Spreekbuis
Award‟

2011 Aegon „Hypotheekproduct 2011 Award‟

2009 „Gouden Spreekbuis Award‟ and the Performance Award
SAECURE 6 called at 27 august 2013. Recovery rates for Saecure 6 are based on end of July 2013 figures
Residential mortgage loan production


70% of Dutch borrowers take out mortgage loans with
interest reset periods in excess of 5 years (source: Aegon)

Aegon customers are even more risk-averse: > 90% have
opted for interest reset dates in excess of 5 years

Aegon customers can repay without penalty up to the current
WOZ valuation of the property. This option is available
November 1st 2013 until January 1st 2015

For Aegon, all mortgage loans are originated via
intermediaries

52
Aegon‟s customers are increasingly switching to (longer
term) fixed interest rates (especially 10-year interest reset
terms) due to the low absolute long term interest rates and
uncertainty in the economic situation
However, all underwriting decisions are made by Aegon‟s
underwriting team based in Leeuwarden
Source: Aegon
Aegon mortgage loan part production –
by interest reset period
Source: Aegon (%) January 2013 – December 2013
Aegon mortgage loan part production – by product type
Source: Aegon (%) January 2013 – December 2013
Aegon underwriting process

Aegon has a robust underwriting process that allows it to make lending decisions on a timely basis

Integrated and efficient approach from proposal to disbursement of the mortgage loan, including origination and administration
of supplementary insurance products

The underwriting process at Aegon has been digitalised, which leads to efficient internal and client processes
Underwriting
Aegon
front office
Mortgage broker

Preparation of
proposals


Reviewing of
proposals
Preparation and
sending of
proposals
Process
Aegon
mid office



Cycle time is max





53
Cycle time is max
2 days
Source: Aegon
Aegon
back office 1
Receipt of signed
proposals
Verification of docs
(customer ID etc)
Sending
documents to the
notary
Receiving
preliminary deeds
& settlements
Verification of
documents
Transfer of money


Cycle
times
Servicing
5 days


Aegon
back office 2
Receipt of signed
deeds
Transferring
mortgage loans to
the back office
system
Transferring
insurance policies
to the back office
system

Cycle time is

5 days


Handling of
mortgage loan
changes
Insurance policy
changes
98% of all
customers pay via
direct debit and
2% by bank
transfer
Cycle time is
5 days





54
Borrower


Underwriting criteria based on Code of Conduct criteria
Credit searches with BKR (National Credit Register) and SFH (Fraud Register)
Collateral




Owner occupied properties
Mandatory valuation of the property
Mandatory damage and fire insurance
Additional forms of collateral: life insurance and equity portfolios
Loan
Underwriting criteria & credit process


Underwriting criteria based on Code of Conduct criteria (LTVs, DTIs etc)
Mortgage loans with life insurance policies attached are priced more competitively (cross-selling)
Aegon Leven‟s underwriting team consists of 46 professionals. 25% of the team have more than 10 years experience
Strict lending limits apply to the 5 authorisation levels (e.g. underwriter with average experience = €400,000 limit)
Underwriting of loans exceeding €700,000 have to be approved by a senior underwriter and a member of the
management team together
Approximately 20% of applications are declined immediately, the most common reasons for rejections include bad credit
references (BKR) and high loan to income ratios (Aegon Leven follows National Budgeting Institute guidelines for
income)
Aegon Leven‟s average acceptance rate on loan applications is approximately 66%
Source: Aegon
Underwriting criteria

Before 1 April 2011 all mortgage loan origination was done out of Aegon Leven. As of 1 April 2011 all origination is done by Aegon
Hypotheken B.V., a 100% subsidiary of Aegon NL

All borrowers must meet Aegon‟s lending criteria which largely focus on collateral and income

The approval to lend outside the automatically accepted lending criteria may be granted on a loan-by-loan basis subject to senior
underwriter approval

Majority of mortgage loan acceptances on income criteria are via the system

Additionally, Aegon endorses the underwriting criteria set out by the Dutch Code of Conduct

The explain ratio for Aegon is less than 5%

Aegon has well defined limits and criteria to whom and under what conditions Aegon can lend to its customers:
►
Since 2009 LTVs cannot exceed 109%
►
Since 2011 LTVs cannot exceed 106%
►
Since 2014 LTV‟s cannot exceed 104%
►
Standard CHF criteria state that borrowers cannot borrow more than 4.5x their gross salary. Explain cases are capped at 6.5x gross salary
►
Only residential mortgage loans
►
If certain LTFV thresholds are exceeded, life insurance is compulsory
►
Aegon has the first lien on property with a recourse to the borrower or recourse to NHG
►

55
Since August 2011 the Interest-only part is capped at 50% of market value, remainder needs some form of repayment. This was already
applicable for NHG mortgages.
Aegon has an automatic valuation system (only for existing mortgage loans). Aegon revaluates the borrower‟s property with the
NBWO system to improve their position in Aegon‟s LTFV buckets. At this moment revaluation is done in case of renewal of contracts in
the <90% LTFV and <125% LTFV buckets, which results in better retention (currently a retention rate of 87%)
Source: Aegon
Changes in Aegon underwriting criteria
2008
- Discontinued Aegon KredietHypotheek (Credit mortgage loan)
2009
- LTV cannot exceed 109%
2010
- Discontinued Aegon BeleggingsHypotheek (Investment mortgage loan)
2011
- LTV cannot exceed 106% (entire market)
- Introduction Aegon BankspaarHypotheek (Bank savings mortgage loan)
- Interest-only part is capped at 50% of market value, remainder needs some form of repayment
2012
- Legal maturity date for Interest only mortgages set at max 30 years, used to be the day the owner turned 100
- Discontinued mortgages for recreational homes
2013
- Prepayment without penalty for the loan balance in excess of the WOZ value of the property (temporary arrangement from
November 1st 2013 to January 1st 2015)
2014
56
- Existing IO mortgages can be transferred up to a maximum of 50% IO
- Residual debt after sale of property can be co-financed. Only for existing Aegon customers and under current underwriting
criteria
Source: Aegon
Focus on foreclosure in the Netherlands 1
Foreclosure

Further recourse to other wealth including salary
A mortgage loan lender can repossess and
sell a property by public auction without
court order
►
►
►
A lender only needs to adhere to appropriate notice
periods and have process run by a public notary
In insolvency, the maximum stay that a court can
impose is 4 months (court can still allow
repossession during this period)
If a lender wants to proceed by private sale rather
than auction, the consent of the court needs to be
requested
AEGON’s collection procedures
Stage 1: Day 15
Action: Automatic reminder
Stage 3: Day 60
Action: Telephone collection list

Full recourse to the borrower
►
►

After foreclosure, any remaining debt remains enforceable until discharged
in full
A lender can attach to the borrower’s salary simply by informing the
employer via bailiff
In insolvency, a debt rescheduling for private individuals (“Wsnp”) can
limit recoveries after repossession
►
►
Covers a period of 3 years, may be extended to 5 years. A court may at the
end render remaining debt unenforceable (“clean sheet”)
In AEGON’s experience, Wsnp and personal insolvencies are rare in the
Netherlands due to the onerous requirements
Stage 5: Day 120
Action: Entire loan declared immediately due and payable
a) Induce a final attempt for voluntary payment
b) Allow time for drafting of legal documents
c) Begin foreclosure process
Days in Arrears
6 Months
60
Stage 2: Day 45
Action: Formal written demand
57
Stage 7: Post Sale
Action: Post sale review
120
Stage 4: Day 90
Action: Urgent arrears list
Stage 6: Foreclosure Process
Action: Repossession and sale
Source: AEGON
1For non-NHG loans; for NHG loans, a lender first seeks to obtain payment (up to EUR 320,000) under the guarantee
Continued on next page
Repossession & sale process in the Netherlands
Continued from previous page
Stage 5c
Action to receive payment
Stage 6
Sale process
Up to 1 Year¹
Stage 7
Post-sale
Letter of lien of salary
Third party guarantor
Yes
Joint voluntary sale
Borrower
cooperation
decision
Unsuccessful
No
58
Foreclosure
begins
Notary
appointed
Bailiff appointed
to collect any
remaining debts²
Successful
Private sale
Sale type
decision
Auction
Source: Aegon
¹This is the average total time from the first missed payment until the actual foreclosure date
²The bailiff works on a no cure no pay arrangement. Extra expenses incurred are added to the default amount as are penalty interests
Set-off risk in the Dutch market
Savings and insurance vehicles: general remark

A Dutch mortgage loan lender can access the linked savings, investment or insurance products in case a borrower defaults
►
No discretion on the part of the borrower to divert funds
Potential set-off by the borrower & mitigants
Source: Moody‟s, Updated Methodology for Set-Off in Dutch RMBS, 12 November 2009 and Fitch, EMEA Criteria Addendum – Netherlands, 8 March 2011
 If the insurance company providing the borrower with the insurance policy becomes insolvent, it is possible that the
borrower may set-off the value of his or her policy against the outstanding amount of the mortgage loan (insurance setoff)
Insurance
mortgage loans
 The risk does not arise in respect of savings products which can form part of an insurance mortgage loan (see below)
 All rating agencies model the potential set off risk arising from insurance linked mortgage loans
 Each transaction will be analysed individually, taking into account the loss severity (e.g. capital under insurance policy and
recoveries) and the probability of default (e.g. probability of default of the insurance company and the likelihood of set of f
by a borrower)
Savings
mortgage loans
and Investment
mortgage loans
 Savings mortgage loans and Investment Mortgage loans could theoretically also lead to borrower set off, however this risk
is generally mitigated in Dutch RMBS
►
►
For savings mortgage loans, a sub-participation agreement is entered into which allows to transfer the borrowers‟ monthly savings
payments from the insurance company to the SPV
For Investment mortgage loans, the general set up is that the borrower is investing through a bankruptcy remote securities ac count
 Savings/current accounts held by the borrower with the Seller: usually covered in Dutch RMBS by cash reserve
Other set-off
considerations
59
►
Not relevant for Aegon as no deposits taken
 Construction deposits: usually covered in Dutch RMBS by cash reserve
Source: Aegon
Aegon Highlights
60
Aegon
Underlying earnings before tax by geography*

Aegon is an international life insurance, pensions and asset
management company based in The Hague

Aegon has businesses in over 20 markets in the Americas,
Europe and Asia

Aegon companies employ over 26,500 people and have
millions of customers across the globe

Aegon generated underlying earnings before tax of EUR 1,945
million in 2013

Aegon N.V. owns 100% of Aegon Nederland N.V. (“Aegon
NL”), which owns 100% of Aegon Levensverzekering N.V. and
100% of Aegon Hypotheken B.V.
Source: Aegon
Underlying earnings before tax by line of business*
Source: Aegon
Aegon N.V. credit ratings
Source: S&P, Moody’s and Fitch
Long-term
Rating
agency
2013
Short-term
Rating
Outlook
Rating
S&P
A-
Stable
A-2
Moody’s
A3
Stable
P-2
Fitch
A
Negative
F1
**
Aegon NV issuer credit ratings accurate as of 3 March 2014
61
Source: Aegon
* Excludes negative contribution from Holdings and Other activities
** Non-life earnings EUR -20mln, therefore not visible in diagram
Aegon at a glance
Over
26,500
Life PENSIONS
ASSET MANAGEMENT
insurance
EMPLOYEES1
+20 markets
THROUGHOUT THE AMERICAS,
EUROPE AND ASIA
Underlying earnings
before tax in 2013
EUR
1.9 billion
62
1)
As per December 31, 2013
Revenue-generating
investments
EUR
475
billion1
Aegon Netherlands N.V. (“Aegon NL”)
Underlying earnings before tax

Aegon NL is wholly owned by Aegon N.V. and a core member of the
Aegon group

Aegon NL offers a wide range of financial products and services to
its clients, including pensions, insurance (life and non-life),
mortgage loans, savings and investment products

Beginning April 1, 2011 all newly originated mortgage loans are
underwritten by Aegon Hypotheken B.V., a 100% subsidiary of
Aegon Netherlands N.V.; mortgage loan servicing will continue to
be performed by Aegon Leven

In 2013, Aegon NL represented 17% of Aegon‟s total underlying
earnings before tax

Aegon Leven has a AA- (Stable) IFSR from Standard & Poor‟s **
Source: Aegon
EUR millions
2013
Life and Savings
243
Pensions
111
Non-life
(20)
Distribution
18
Share in underlying earnings before tax of associates
2
Underlying earnings before tax
355
Aegon NL as a % of Aegon
Source: Aegon, FY 2013
Simplified Aegon NL Structure
Aegon NL
Employees
17%
Market consistent VNB
Sales
83%
27%
100%
95%
17%
0%
Aegon N.V.
73%
5%
Underlying earnings before tax*
63
Other Entities
Aegon Netherlands N.V.
83%
20%
40%
60%
100%
80%
100%
Aegon Bank N.V.
100%
Aegon
Hypotheken B.V.
Source: Aegon
* Excludes negative contribution from Holdings and Other activities
** Credit ratings accurate as of 3 March 2014. Refer to rating agency websites for additional detail.
100%
Aegon Levensverzekering N.V.
100%
Aegon Schadeverzekering N.V.
Appendix:
Provisional Stratification Tables
64
Portfolio stratification
Key Characteristics
Notes
As per reporting date
Principal balance
1,574,318,425
Value of saving deposits
1,501,700,514
Construction deposits
5,731,892
Net principal balance excl. construction and saving deposits
Number of loans
1,495,968,622
8,030
Number of loanparts
2.
The weighted average coupon is based on current interest rate of the Loan Part, weighted by the net
principal balance.
3.
The weighted average maturity (in years) is based on the legal maturity date of the Loan Part and
the cut-off date, weighted by the net principal balance.
4.
The weighted average seasoning (in years) is based on the origination date of the Loan Part and the
Cut-Off Date, weighted by the net principal balance.
5.
The weighted average LTMV is based on the „net principal balance‟ for each Mortgage Loan divided by
the „Market Value‟ upon origination of the Mortgage Loan‟, weighted by the net principal balance.
6.
The weighted average LTMV (indexed) is based on the „net principal balance‟ for each Mortgage Loan
divided by the „Indexed Market Value‟ upon origination of the Mortgage Loan‟, weighted by the net
principal balance. The Indexation is based on data from the Land Registry as per December 2013.
7.
The weighted average LTFV is based on the „net principal balance‟ for each Mortgage Loan divided by
the „Foreclosure Value‟ upon origination of the Mortgage Loan, weighted by the net principal balance.
8.
The weighted average LTFV (indexed) is based on the „net principal balance‟ for each loan divided by
the „Indexed Foreclosure Value‟ upon origination of the Mortgage Loan, weighted by the net principal
balance. The Indexation is based on data from the Land Registry as per December 2013.
9.
The Loan-to-Foreclosure-Value of most loans is based on the foreclosure value upon origination of the
Mortgage Loans except for a few Mortgage Loans which have been revaluated on a later date. Such a
revaluation has exclusively been made in respect of Mortgage Loans which have been increased or
decreased and has been based on the foreclosure value upon the day of the alteration.
15,637
Average principal balance (borrower)
187,011
Weighted average current interest rate
4.81
Weighted average Remaining Fixed Rate Period (in years)
65
All totals and balances included in the stratification tables are based on net principal balance (i.e. net
of value of saving deposits).
72,617,911
Net principal balance
17.99
Weighted average maturity (in years)
35.5
Weighted average seasoning (in years)
2.54
Weighted average LTMV
1.
95.1%
Weighted average LTMV (indexed)
105.1%
Weighted average LTFV
105.8%
Weighted averageLTFV (indexed)
116.9%
Source: AEGON
Note: All values in the following stratification tables are as a percentage of current outstanding net balance
Portfolio stratification (cont’d)
Redemption type
Aggregate
Outstanding
Not. Amount
Description
Annuity
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
55,934,216
3.7%
596
3.8%
4.62
28.2
95.7%
Bank Savings
496,136,531
33.0%
4,372
28.0%
4.94
26.9
98.0%
Interest Only
535,846,356
35.7%
6,820
43.6%
4.60
53.1
93.4%
2,042,712
0.1%
18
0.1%
4.16
22.5
88.5%
73,018,875
4.9%
681
4.4%
4.72
22.2
89.6%
1,220,200
0.1%
14
0.1%
4.34
28.6
89.4%
337,501,625
22.5%
3,136
20.1%
5.04
24.6
94.9%
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Investments
Life Insurance
Linear
Savings
Total
Outstanding loan amount
% of
Total
Nr of
Loans
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( > )
Until ( <= )
<
25,000
-
-
-
-
-
-
-
25,000
50,000
50,000
-
1
0.0%
4.95
28.8
23.0%
50,000
75,000
7,013,115
0.5%
109
1.4%
4.39
32.1
50.5%
75,000
100,000
27,042,671
1.8%
302
3.8%
4.70
31.2
71.4%
100,000
150,000
222,734,888
14.8%
1,729
21.5%
4.79
33.0
86.8%
150,000
200,000
477,143,319
31.8%
2,716
33.8%
4.84
34.8
95.2%
200,000
250,000
472,820,067
31.5%
2,123
26.4%
4.85
36.5
97.9%
250,000
300,000
213,513,261
14.2%
791
9.9%
4.78
37.0
99.7%
300,000
350,000
81,383,192
5.4%
259
3.2%
4.73
38.6
101.8%
350,000
400,000
-
-
-
-
-
-
-
400,000
450,000
-
-
-
-
-
-
-
450,000
500,000
-
-
-
-
-
-
-
Weighted Average
500,000
>
-
-
-
-
-
-
-
Minimum
50,000
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Maximum
343,675
Total
66
Aggregate
Outstanding
Not. Amount
187,011
Origination year
Seasoning
Aggregate
Outstanding
Not. Amount
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
Aggregate
Outstanding
Not. Amount
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( >= )
Until ( < )
From ( >= )
Until ( < )
<
1995
-
-
-
-
-
-
-
<
1 year
53,960,262
3.6%
502
3.2%
4.40
29.8
96.0%
1995
1996
-
-
-
-
-
-
-
1 year
2 years
792,098,114
52.8%
7,898
50.5%
4.79
31.6
96.8%
1996
1997
-
-
-
-
-
-
-
2 years
3 years
265,828,890
17.7%
2,737
17.5%
4.81
42.3
95.4%
1997
1998
-
-
-
-
-
-
-
3 years
4 years
95,671,734
6.4%
1,008
6.5%
4.66
41.9
94.5%
1998
1999
-
-
-
-
-
-
-
4 years
5 years
89,271,215
5.9%
993
6.4%
5.50
40.9
95.1%
1999
2000
-
-
-
-
-
-
-
5 years
6 years
74,552,504
5.0%
849
5.4%
5.26
40.6
92.9%
2000
2001
-
-
-
-
-
-
-
6 years
7 years
64,505,455
4.3%
770
4.9%
4.72
38.1
89.9%
2001
2002
-
-
-
-
-
-
-
7 years
8 years
51,860,088
3.5%
692
4.4%
4.34
35.7
82.1%
2002
2003
-
-
-
-
-
-
-
8 years
9 years
13,714,994
0.9%
184
1.2%
4.27
33.6
81.0%
9 years
10 years
237,257
0.0%
4
0.0%
4.34
38.0
100.7%
10 years
11 years
-
-
-
-
-
-
-
11 years
12 years
-
-
-
-
-
-
-
12 years
13 years
-
-
-
-
-
-
-
13 years
14 years
-
-
-
-
-
-
-
14 years
15 years
-
-
-
-
-
-
-
93.9%
15 years
16 years
-
-
-
-
-
-
-
95.5%
16 years
17 years
-
-
-
-
-
-
-
96.8%
17 years
18 years
-
-
-
-
-
-
-
19 years
-
-
-
-
-
-
-
2003
2004
-
-
-
-
-
-
-
2004
2005
-
-
-
-
-
-
-
2005
2006
12,676,233
0.8%
172
1.1%
4.30
33.9
81.1%
2006
2007
2008
2009
2010
2011
2012
2007
2008
2009
2010
2011
2012
2013
45,639,572
66,618,731
77,800,033
86,867,736
81,925,922
283,568,213
792,132,440
3.0%
4.4%
5.2%
5.8%
5.5%
18.9%
52.8%
608
810
886
969
865
2,919
7,902
3.9%
5.2%
5.7%
6.2%
5.5%
18.7%
50.5%
4.31
4.66
5.24
5.50
4.72
4.80
4.79
35.3
37.8
40.6
41.0
41.8
42.3
31.6
81.2%
89.3%
92.9%
95.1%
2013
2014
54,471,633
3.6%
506
3.2%
4.40
30.0
96.0%
18 years
2014
2015
-
-
-
-
-
-
-
19 years
20 years
-
-
-
-
-
-
2015
2016
-
-
-
-
-
-
-
20 years
>
-
-
-
-
-
-
-
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Total
Weighted Average
-
Total
Weighted Average
2.5
Minimum
2005
Minimum
0.1
Maximum
2013
Maximum
9.0
* Seasoning is defined as the period between the date of origination of the Loan Part and the Cut-Off part
67
Legal maturity
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( >= )
Until ( < )
<
2015
17,596
-
2
0.0%
2.49
0.7
95.6%
2015
2020
266,060
0.0%
11
0.1%
4.59
5.3
75.8%
2020
2025
2,552,232
0.2%
62
0.4%
4.84
8.9
74.4%
2025
2030
19,064,954
1.3%
322
2.1%
4.87
14.1
76.9%
2030
2035
118,666,335
7.9%
1,303
8.3%
4.99
18.9
88.2%
2035
2040
224,980,875
15.0%
2,168
13.9%
5.04
23.6
94.0%
2040
2045
763,722,388
50.9%
7,037
45.0%
4.77
28.5
97.9%
2045
2050
1,535,558
0.1%
16
0.1%
4.24
33.5
39.8%
2050
2055
3,381,509
0.2%
46
0.3%
4.36
38.7
55.1%
2055
2060
9,093,236
0.6%
120
0.8%
4.31
43.6
72.1%
2060
2065
20,170,962
1.3%
269
1.7%
4.59
48.7
81.9%
2065
2070
33,960,652
2.3%
451
2.9%
4.63
53.7
88.5%
2070
2075
50,674,047
3.4%
661
4.2%
4.68
58.5
92.8%
2075
2080
68,187,497
4.5%
872
5.6%
4.71
63.7
95.1%
2080
2085
107,340,887
7.2%
1,339
8.6%
4.77
68.5
96.8%
2085
2090
78,085,726
5.2%
958
6.1%
4.78
73.1
98.3%
2090
2095
-
-
-
-
-
-
-
Weighted Average
2095
2100
-
-
-
-
-
-
-
Minimum
2014
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Maximum
2089
Total
68
Aggregate
Outstanding
Not. Amount
-
Remaining tenor
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( >= )
Until ( < )
<
1 year
17,596
-
2
0.0%
2.49
0.7
95.6%
1 year
2 years
-
-
-
-
-
-
-
2 years
3 years
-
-
-
-
-
-
-
3 years
4 years
32,264
-
3
0.0%
3.91
3.5
89.8%
4 years
5 years
28,696
-
2
0.0%
4.62
4.8
49.8%
5 years
6 years
205,100
0.0%
6
0.0%
4.69
5.6
77.2%
6 years
7 years
128,732
0.0%
6
0.0%
4.62
6.6
74.6%
7 years
8 years
520,542
0.0%
13
0.1%
4.61
7.5
73.2%
8 years
9 years
839,116
0.1%
21
0.1%
4.83
8.6
76.1%
9 years
10 years
398,109
0.0%
10
0.1%
5.00
9.5
82.4%
10 years
11 years
665,734
0.0%
12
0.1%
4.99
10.4
68.5%
11 years
12 years
1,111,588
0.1%
18
0.1%
4.75
11.5
76.6%
12 years
13 years
2,270,735
0.2%
35
0.2%
4.52
12.6
70.9%
13 years
14 years
6,271,541
0.4%
127
0.8%
4.96
13.7
72.6%
14 years
15 years
3,725,971
0.3%
61
0.4%
4.84
14.5
77.2%
15 years
16 years
5,685,119
0.4%
81
0.5%
4.97
15.5
83.9%
16 years
17 years
7,444,263
0.5%
104
0.7%
4.89
16.6
82.3%
17 years
18 years
19,470,550
1.3%
219
1.4%
4.99
17.4
87.8%
18 years
19 years
46,066,541
3.1%
505
3.2%
4.93
18.7
85.7%
19 years
20 years
21,081,309
1.4%
236
1.5%
5.01
19.5
91.0%
20 years
21 years
24,603,672
1.6%
239
1.5%
5.09
20.5
92.5%
21 years
22 years
31,739,937
2.1%
324
2.1%
4.90
21.5
93.6%
22 years
23 years
42,922,396
2.9%
425
2.7%
4.70
22.5
93.3%
23 years
24 years
56,453,623
3.8%
537
3.4%
4.87
23.5
93.5%
24 years
25 years
47,752,929
3.2%
457
2.9%
5.24
24.5
93.7%
25 years
26 years
46,111,990
3.1%
425
2.7%
5.47
25.5
95.7%
26 years
27 years
34,707,107
2.3%
301
1.9%
4.94
26.6
95.5%
27 years
28 years
106,159,187
7.1%
931
6.0%
4.88
27.3
96.9%
28 years
29 years
576,072,441
38.4%
5,393
34.5%
4.77
28.7
98.3%
29 years
30 years
46,660,560
3.1%
410
2.6%
4.39
29.5
96.9%
30 years
40 years
4,037,611
0.3%
49
0.3%
4.36
36.1
48.8%
40 years
50 years
25,372,608
1.7%
337
2.2%
4.47
46.2
76.7%
50 years
60 years
79,103,628
5.3%
1,031
6.6%
4.65
55.7
90.5%
60 years
70 years
163,615,824
10.9%
2,085
13.3%
4.73
65.7
95.6%
70 years
80 years
100,423,497
6.7%
1,232
7.9%
4.79
72.5
98.2%
80 years
90 years
-
-
-
-
-
-
-
90 years
>
-
-
-
-
-
-
-
Total
69
Aggregate
Outstanding
Not. Amount
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Weighted Average
35.5
Minimum
0.6
Maximum
75.9
* The Remaining Tenor is defined as the period between the Cut-Off Date and the legal maturity date of the Loan Part
Original loan to original foreclosure value
% of
Total
Nr of
Loans
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( > )
Until ( <= )
Unknown
0%
-
-
-
-
-
-
-
<
10%
-
-
-
-
-
-
-
10%
20%
55,000
-
1
0.0%
4.30
49.1
17.7%
20%
30%
1,260,996
0.1%
15
0.2%
4.28
40.8
22.1%
30%
40%
4,347,270
0.3%
48
0.6%
4.09
33.8
31.0%
40%
50%
7,820,110
0.5%
76
1.0%
4.15
33.6
39.6%
50%
60%
14,657,460
1.0%
123
1.5%
4.16
32.4
46.9%
60%
70%
18,038,710
1.2%
151
1.9%
4.52
29.9
55.3%
70%
80%
26,045,705
1.7%
191
2.4%
4.65
30.5
63.2%
80%
90%
48,187,099
3.2%
316
3.9%
4.65
31.6
73.0%
90%
100%
86,794,546
5.8%
555
6.9%
4.72
32.0
81.6%
100%
110%
117,594,624
7.8%
652
8.1%
4.72
32.5
90.2%
110%
120%
792,145,030
52.8%
3,923
48.9%
4.85
37.6
98.7%
120%
130%
384,753,965
25.6%
1,979
24.7%
4.88
34.3
103.1%
130%
140%
-
-
-
-
-
-
-
140%
150%
-
-
-
-
-
-
-
150%
>
-
-
-
-
-
-
-
Minimum
19.6%
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Maximum
130.0%
Total
70
Aggregate
Outstanding
Not. Amount
* Original Loan to Original Foreclosure Value is defined as: Original Principle Amount / Original Foreclosure Value
Weighted Average
111.9%
Current loan to original foreclosure value
% of
Total
Nr of
Loans
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( > )
Until ( <= )
Unknown
0%
-
-
-
-
-
-
-
<
10%
-
-
-
-
-
-
-
10%
20%
232,488
0.0%
4
0.1%
4.71
25.1
17.6%
20%
30%
1,787,476
0.1%
22
0.3%
4.24
40.9
22.8%
30%
40%
5,498,849
0.4%
59
0.7%
4.15
32.6
32.4%
40%
50%
11,364,012
0.8%
106
1.3%
4.29
31.8
41.4%
50%
60%
17,894,327
1.2%
154
1.9%
4.33
32.1
49.9%
60%
70%
26,621,905
1.8%
206
2.6%
4.60
29.5
58.6%
70%
80%
38,800,041
2.6%
267
3.3%
4.71
30.6
68.1%
80%
90%
77,247,080
5.1%
489
6.1%
4.74
32.3
77.0%
90%
100%
151,436,305
10.1%
876
10.9%
4.85
34.2
85.9%
100%
110%
420,609,906
28.0%
2,131
26.5%
4.91
38.3
95.3%
110%
120%
627,708,147
41.8%
3,087
38.4%
4.81
35.9
102.9%
120%
130%
122,499,978
8.2%
629
7.8%
4.74
31.7
109.6%
130%
140%
-
-
-
-
-
-
-
140%
150%
-
-
-
-
-
-
-
150%
>
-
-
-
-
-
-
-
Minimum
19.1%
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Maximum
128.5%
Total
71
Aggregate
Outstanding
Not. Amount
Weighted Average
* Current Loan to Original Foreclosure Value is defined as: (Outstanding Principle Amount – Total Savings Amount) / Original Foreclosure Value
105.8%
Current loan to indexed(1) foreclosure value
% of
Total
Nr of
Loans
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( > )
Until ( <= )
Unknown
0%
-
-
-
-
-
-
-
<
10%
-
-
-
-
-
-
-
10%
20%
-
-
-
-
-
-
-
20%
30%
1,397,406
0.1%
18
0.2%
4.32
38.3
20.7%
30%
40%
3,919,418
0.3%
44
0.6%
4.13
32.7
30.1%
40%
50%
7,660,197
0.5%
73
0.9%
4.24
30.8
38.4%
50%
60%
14,533,146
1.0%
131
1.6%
4.29
31.5
46.2%
60%
70%
21,054,305
1.4%
173
2.2%
4.47
30.4
54.5%
70%
80%
26,122,957
1.7%
189
2.4%
4.69
29.8
62.6%
80%
90%
42,349,296
2.8%
290
3.6%
4.74
29.9
71.5%
90%
100%
78,314,416
5.2%
495
6.2%
4.70
31.7
79.5%
100%
110%
121,809,062
8.1%
702
8.7%
4.77
32.5
87.2%
110%
120%
304,219,147
20.3%
1,537
19.1%
4.81
33.6
96.2%
120%
130%
677,566,787
45.1%
3,375
42.0%
4.83
36.7
101.8%
130%
140%
202,754,377
13.5%
1,003
12.5%
4.98
40.6
103.0%
140%
150%
-
-
-
-
-
-
-
150%
>
-
-
-
-
-
-
-
Minimum
21.7%
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Maximum
135.0%
Total
72
Aggregate
Outstanding
Not. Amount
Weighted Average
* Current Loan to Original Foreclosure Value is defined as: (Outstanding Principle Amount – Total Savings Amount) / Original Foreclosure Value
** Indexed Foreclosure Value is defined as: Original Foreclosure Value * Index
*** Index is based on Land Registry data up to and including December 2013
(1) Indexation is based on figures from the Land registry as of December 2013
116.9%
Original loan to original market value
% of
Total
Nr of
Loans
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( > )
Until ( <= )
Unknown
0%
<
10%
-
-
-
-
-
-
-
10%
20%
277,018
0.0%
3
0.0%
4.42
51.3
19.1%
20%
30%
1,859,230
0.1%
21
0.3%
4.04
36.7
25.2%
30%
40%
6,231,901
0.4%
66
0.8%
4.21
33.8
34.3%
40%
50%
12,565,883
0.8%
116
1.4%
4.08
32.6
43.1%
50%
60%
18,547,369
1.2%
154
1.9%
4.38
30.6
52.4%
60%
70%
25,364,148
1.7%
193
2.4%
4.61
30.9
60.8%
70%
80%
48,473,232
3.2%
321
4.0%
4.65
31.1
71.4%
80%
90%
96,848,840
6.5%
619
7.7%
4.71
32.0
81.4%
90%
100%
173,715,000
11.6%
939
11.7%
4.79
34.4
91.6%
100%
110%
924,663,721
61.6%
4,596
57.2%
4.85
36.9
99.7%
110%
120%
193,154,172
12.9%
1,002
12.5%
4.91
34.3
103.9%
120%
130%
-
-
-
-
-
-
-
130%
140%
-
-
-
-
-
-
-
140%
150%
-
-
-
-
-
-
-
150%
>
-
-
-
-
-
-
-
Minimum
17.7%
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Maximum
117.0%
Total
73
Aggregate
Outstanding
Not. Amount
-
-
-
-
-
-
* Original Loan to Original Market Value is defined as: Original Principal Amount / Original Market Value
** The Original Market Value is defined as Original Foreclosure Value / 0.9
-
Weighted Average
100.6%
Current loan to original market value
% of
Total
Nr of
Loans
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( > )
Until ( <= )
Unknown
0%
<
10%
-
-
-
-
-
-
-
10%
20%
667,227
0.0%
9
0.1%
4.50
34.9
18.6%
20%
30%
2,918,975
0.2%
33
0.4%
4.02
37.0
26.8%
30%
40%
7,558,737
0.5%
79
1.0%
4.24
32.8
36.0%
40%
50%
16,113,275
1.1%
144
1.8%
4.28
31.6
45.3%
50%
60%
27,032,332
1.8%
218
2.7%
4.51
30.1
55.3%
60%
70%
37,430,765
2.5%
266
3.3%
4.72
30.5
65.6%
70%
80%
76,229,534
5.1%
483
6.0%
4.72
32.1
75.7%
80%
90%
164,954,098
11.0%
963
12.0%
4.84
34.0
85.6%
90%
100%
527,017,883
35.1%
2,634
32.8%
4.89
38.7
96.2%
100%
110%
596,813,679
39.7%
2,973
37.0%
4.80
34.6
104.3%
110%
120%
44,964,009
3.0%
228
2.8%
4.73
31.9
111.4%
120%
130%
-
-
-
-
-
-
-
130%
140%
-
-
-
-
-
-
-
140%
150%
-
-
-
-
-
-
-
150%
>
-
-
-
-
-
-
-
Minimum
17.2%
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Maximum
115.7%
Total
74
Aggregate
Outstanding
Not. Amount
-
-
-
-
-
-
-
Weighted Average
* Current Loan to Original Market Value is defined as: (Outstanding Principal Amount – Total Savings Amount) / Original Market Value
** The Original Market Value is defined as Original Foreclosure Value / 0.9
95.1%
Current loan to indexed(1) market value
% of
Total
Nr of
Loans
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( > )
Until ( <= )
Unknown
0%
-
-
-
-
-
-
-
<
10%
-
-
-
-
-
-
-
10%
20%
51,658
-
1
0.0%
5.60
12.7
17.2%
20%
30%
1,709,611
0.1%
22
0.3%
4.25
39.0
21.8%
30%
40%
6,362,786
0.4%
68
0.9%
4.13
31.6
32.7%
40%
50%
12,307,273
0.8%
115
1.4%
4.25
31.0
42.5%
50%
60%
20,501,001
1.4%
171
2.1%
4.40
31.0
51.6%
60%
70%
26,730,002
1.8%
205
2.6%
4.64
29.8
60.1%
70%
80%
43,030,983
2.9%
294
3.7%
4.74
29.9
70.3%
80%
90%
86,235,785
5.7%
546
6.8%
4.70
31.5
79.2%
90%
100%
146,517,301
9.8%
835
10.4%
4.76
32.2
88.3%
100%
110%
402,220,828
26.8%
2,035
25.3%
4.81
34.0
97.7%
110%
120%
701,669,654
46.7%
3,467
43.2%
4.86
37.9
102.2%
120%
130%
54,363,633
3.6%
271
3.4%
5.09
41.6
102.9%
130%
140%
-
-
-
-
-
-
-
140%
150%
-
-
-
-
-
-
-
150%
>
-
-
-
-
-
-
-
Minimum
19.5%
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Maximum
121.5%
Total
75
Aggregate
Outstanding
Not. Amount
(1) Indexation is based on figures from the Land registry as of December 2013
Weighted Average
105.1%
Loanpart coupon (interest rate bucket)
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( > )
Until ( <= )
Unknown
0.00%
-
-
-
-
-
-
-
<
0.50%
-
-
-
-
-
-
-
0.50%
1.00%
-
-
-
-
-
-
-
1.00%
1.50%
-
-
-
-
-
-
-
1.50%
2.00%
-
-
-
-
-
-
-
2.00%
2.50%
47,674,239
3.2%
642
4.1%
2.28
41.4
85.4%
2.50%
3.00%
917,557
0.1%
13
0.1%
3.00
28.2
97.0%
3.00%
3.50%
543,039
0.0%
13
0.1%
3.23
25.7
89.7%
3.50%
4.00%
25,267,293
1.7%
288
1.8%
3.93
30.9
91.5%
4.00%
4.50%
205,361,235
13.7%
2,351
15.0%
4.37
39.6
93.1%
4.50%
5.00%
730,249,421
48.6%
7,430
47.5%
4.80
35.6
97.1%
5.00%
5.50%
386,662,222
25.8%
3,839
24.6%
5.22
33.9
94.4%
5.50%
6.00%
103,906,108
6.9%
1,048
6.7%
5.69
32.0
93.9%
6.00%
6.50%
1,078,248
0.1%
12
0.1%
6.24
21.1
88.5%
Weighted Average
4.8
7.00%
>
41,152
-
1
0.0%
7.10
5.5
57.0%
Minimum
2.1
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Maximum
7.1
Total
76
Aggregate
Outstanding
Not. Amount
Remaining interest rate fixed period
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( >= )
Until ( < )
<
1 year
52,785,233
3.5%
724
4.6%
2.43
40.5
85.7%
1 year
2 years
4,060,386
0.3%
61
0.4%
4.05
32.9
82.0%
2 years
3 years
11,178,820
0.7%
149
1.0%
4.28
37.8
86.8%
3 years
4 years
11,217,134
0.8%
166
1.1%
4.35
33.0
89.4%
4 years
5 years
9,244,697
0.6%
120
0.8%
4.66
40.8
94.1%
5 years
6 years
8,182,981
0.5%
113
0.7%
4.71
37.4
95.5%
6 years
7 years
18,110,735
1.2%
209
1.3%
4.50
42.0
93.7%
7 years
8 years
112,545,444
7.5%
1,218
7.8%
4.77
43.0
95.4%
8 years
9 years
118,388,355
7.9%
1,303
8.3%
4.62
31.6
97.4%
9 years
10 years
17,471,253
1.2%
182
1.2%
4.31
30.9
95.4%
10 years
11 years
625,313
0.0%
14
0.1%
5.31
33.4
75.6%
11 years
12 years
1,024,278
0.1%
15
0.1%
4.92
16.1
67.4%
12 years
13 years
19,940,749
1.3%
264
1.7%
4.51
35.1
79.9%
13 years
14 years
36,600,461
2.4%
481
3.1%
4.77
30.0
86.1%
14 years
15 years
8,797,639
0.6%
103
0.7%
5.06
33.7
90.8%
15 years
16 years
4,966,272
0.3%
65
0.4%
5.37
19.3
90.3%
16 years
17 years
32,884,556
2.2%
347
2.2%
4.67
38.7
93.9%
17 years
18 years
140,191,727
9.3%
1,369
8.8%
4.88
40.5
95.5%
18 years
19 years
343,833,094
22.9%
3,393
21.7%
4.86
31.3
97.0%
19 years
20 years
33,837,677
2.3%
322
2.1%
4.63
27.9
94.3%
20 years
21 years
10,232,373
0.7%
100
0.6%
5.46
24.1
92.4%
21 years
22 years
7,233,464
0.5%
73
0.5%
5.44
23.4
92.8%
22 years
23 years
24,961,240
1.7%
300
1.9%
4.63
35.1
87.0%
23 years
24 years
55,256,837
3.7%
619
4.0%
4.82
38.3
92.8%
24 years
25 years
64,139,174
4.3%
727
4.7%
5.27
42.4
93.4%
25 years
26 years
66,758,503
4.5%
718
4.6%
5.58
43.4
95.5%
26 years
27 years
24,379,855
1.6%
229
1.5%
5.37
42.2
95.5%
27 years
28 years
14,541,715
1.0%
130
0.8%
5.34
41.1
95.5%
28 years
29 years
236,655,582
15.8%
2,039
13.0%
5.09
33.1
99.3%
29 years
30 years
11,654,968
0.8%
84
0.5%
4.80
32.1
97.5%
30 years
Total
77
Aggregate
Outstanding
Not. Amount
>
-
-
-
-
-
-
-
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Weighted Average
Minimum
Maximum
* The Remaining Interest Rate Fixed Period is defined as the period between the Cut-Off Date and the interest reset date of the Loan Part
18.0
29.6
Interest payment type
Description
Fixed
Floating
Total
Aggregate
Outstanding
Not. Amount
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
1,452,771,302
96.7%
14,973
95.8%
4.90
35.3
95.5%
48,929,212
3.3%
664
4.3%
2.30
41.1
85.6%
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Property description
78
Property
Aggregate
Outstanding
Not. Amount
Apartment
195,915,014
% of
Total
Nr of
Loans
13.1%
1,291
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
16.1%
4.78
34.6
94.8%
House
1,305,785,500
87.0%
6,739
83.9%
4.82
35.7
95.2%
Total
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Geographical distribution (by province)
Province
Aggregate
Outstanding
Not. Amount
Brabant
216,474,304
14.4%
1,091
13.6%
4.81
35.2
93.9%
Drenthe
38,197,044
2.5%
213
2.7%
4.73
37.2
95.2%
Flevoland
32,389,950
2.2%
184
2.3%
4.69
36.5
95.5%
Friesland
36,846,924
2.5%
221
2.8%
4.65
36.4
91.7%
Gelderland
185,145,914
12.3%
960
12.0%
4.79
36.8
95.3%
Groningen
59,194,956
3.9%
370
4.6%
4.76
35.3
94.9%
Limburg
119,622,256
8.0%
688
8.6%
4.93
34.9
95.7%
Noord-Holland
186,880,957
12.4%
963
12.0%
4.79
34.3
95.5%
Overijssel
148,281,391
9.9%
776
9.7%
4.80
37.6
95.7%
Utrecht
100,294,394
6.7%
492
6.1%
4.79
35.2
94.4%
Zeeland
63,749,361
4.3%
383
4.8%
4.92
34.2
96.1%
314,623,063
21.0%
1,689
21.0%
4.85
34.9
95.6%
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Zuid-Holland
Total
79
% of
Total
Nr of
Loans
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
Geographical distribution (by economic region)
Economic region
NL111 - Oost-Groningen
% of
Total
Nr of
Loans
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
14,367,245
1.0%
94
1.2%
4.70
36.5
96.3%
2,619,791
0.2%
19
0.2%
4.74
35.7
96.6%
NL113 - Overig Groningen
39,666,064
2.6%
242
3.0%
4.80
34.9
94.6%
NL121 - Noord-Friesland
21,401,252
1.4%
135
1.7%
4.66
35.1
90.7%
NL122 - Zuidwest-Friesland
4,801,308
0.3%
27
0.3%
4.89
38.1
93.2%
NL123 - Zuidoost-Friesland
10,994,760
0.7%
61
0.8%
4.52
38.2
92.6%
NL131 - Noord-Drenthe
17,470,006
1.2%
99
1.2%
4.87
37.0
94.6%
NL132 - Zuidoost-Drenthe
11,048,709
0.7%
64
0.8%
4.53
35.1
96.4%
NL133 - Zuidwest-Drenthe
11,677,066
0.8%
62
0.8%
4.65
39.0
94.6%
NL211 - Noord-Overijssel
58,885,484
3.9%
298
3.7%
4.81
37.8
95.5%
NL212 - Zuidwest-Overijssel
24,633,286
1.6%
125
1.6%
4.83
36.4
94.8%
NL213 - Twente
64,955,344
4.3%
354
4.4%
4.78
38.0
96.3%
NL221 - Veluwe
65,876,784
4.4%
323
4.0%
4.78
37.0
94.9%
NL224 - Zuidwest-Gelderland
14,874,250
1.0%
75
0.9%
4.81
36.4
96.0%
NL225 - Achterhoek
39,658,139
2.6%
222
2.8%
4.76
35.9
95.4%
NL226 - Arnhem/Nijmegen
65,447,370
4.4%
343
4.3%
4.82
37.3
95.4%
NL230 - Flevoland
32,389,950
2.2%
184
2.3%
4.69
36.5
95.5%
NL310 - Utrecht
99,393,391
6.6%
488
6.1%
4.79
35.3
94.4%
NL321 - Kop van Noord-Holland
27,164,904
1.8%
143
1.8%
4.86
35.8
95.3%
NL322 - Alkmaar en omgeving
26,232,174
1.8%
135
1.7%
4.86
34.0
95.8%
NL323 - IJmond
20,532,070
1.4%
102
1.3%
4.72
34.9
98.3%
NL324 - Agglomeratie Haarlem
12,466,488
0.8%
64
0.8%
4.67
36.4
92.4%
NL325 - Zaanstreek
14,568,535
1.0%
78
1.0%
4.77
34.1
97.0%
NL326 - Groot-Amsterdam
48,906,156
3.3%
244
3.0%
4.77
34.1
96.5%
NL326 - Groot-Amsterdam
28,740,188
1.9%
152
1.9%
4.78
32.5
93.5%
8,389,566
0.6%
46
0.6%
4.75
34.8
91.4%
NL331 - Agglomeratie Leiden en Bollenstreek
35,799,295
2.4%
177
2.2%
4.79
36.6
94.7%
NL332 - Agglomeratie s-Gravenhage
59,313,037
4.0%
338
4.2%
4.82
33.3
95.4%
NL333 - Delft en Westland
21,543,444
1.4%
111
1.4%
4.88
34.8
93.5%
NL112 - Delfzijl en omgeving
NL327 - Het Gooi en Vechtstreek
NL334 - Oost-Zuid-Holland
40,526,427
2.7%
203
2.5%
4.89
35.1
96.1%
113,752,461
7.6%
620
7.7%
4.83
35.1
96.4%
NL336 - Zuidoost-Zuid-Holland
43,759,651
2.9%
240
3.0%
4.92
35.2
95.4%
NL341 - Zeeuwsch-Vlaanderen
16,761,135
1.1%
107
1.3%
4.99
31.4
97.0%
NL342 - Overig Zeeland
46,988,226
3.1%
276
3.4%
4.90
35.2
95.7%
NL411 - West-Noord-Brabant
57,589,480
3.8%
303
3.8%
4.79
34.6
93.7%
NL412 - Midden-Noord-Brabant
43,441,435
2.9%
217
2.7%
4.85
34.6
95.5%
NL413 - Noordoost-Noord-Brabant
45,631,332
3.0%
221
2.8%
4.79
37.0
93.6%
NL414 - Zuidoost-Noord-Brabant
69,812,057
4.7%
350
4.4%
4.81
35.0
93.5%
NL421 - Noord-Limburg
28,021,347
1.9%
154
1.9%
4.92
36.4
92.9%
NL422 - Midden-Limburg
32,444,163
2.2%
185
2.3%
4.98
34.7
95.8%
NL423 - Zuid-Limburg
59,156,746
3.9%
349
4.4%
4.90
34.2
96.9%
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
NL335 - Groot-Rijnmond
Total
80
Aggregate
Outstanding
Not. Amount
* The economic region is determined based on the zip code of the property underlying the Mortgage Loan
Construction deposits (as a percentage of net principal amount)
Aggregate
Outstanding
Not. Amount
% of
Total
Nr of
Loans
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( > )
Until ( <= )
<
5.00%
1,466,319,264
97.6%
7,844
97.7%
4.82
35.6
95.2%
5.00%
10.00%
20,190,252
1.3%
110
1.4%
4.71
31.8
93.8%
10.00%
15.00%
5,588,418
0.4%
28
0.4%
4.61
33.5
96.9%
15.00%
20.00%
4,118,402
0.3%
20
0.3%
4.76
35.5
94.5%
20.00%
25.00%
3,060,873
0.2%
16
0.2%
4.86
34.9
93.7%
25.00%
30.00%
1,286,250
0.1%
7
0.1%
4.78
31.8
92.8%
30.00%
35.00%
340,099
0.0%
2
0.0%
5.01
33.6
79.5%
35.00%
40.00%
796,957
0.1%
3
0.0%
4.79
27.0
100.2%
40.00%
45.00%
-
-
-
-
-
-
-
45.00%
50.00%
-
-
-
-
-
-
-
50.00%
55.00%
-
-
-
-
-
-
-
Weighted Average
60.00%
>
-
-
-
-
-
-
-
Minimum
0.0%
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Maximum
37.1%
Total
* This is defined as: Construction Deposit Amount / (Outstanding Principal Balance – Total Savings Amount)
Occupancy
Economic region
81
Aggregate
Outstanding
Not. Amount
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
Owner Occupied
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Total
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
* Occupancy information as of mortgage loan origination date
0.4%
Loan to income
% of
Total
Nr of
Borrowers
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
From ( > )
Until ( <= )
Unknown
-
<
0.5
-
-
-
-
-
-
-
0.5
1.0
499,417
0.0%
7
0.1%
3.97
26.4
35.7%
1
1.5
6,200,639
0.4%
65
0.8%
4.47
30.7
47.8%
1.5
2.0
17,390,513
1.2%
149
1.9%
4.62
28.7
61.8%
2
2.5
52,371,870
3.5%
357
4.5%
4.79
30.4
78.8%
2.5
3.0
129,907,210
8.7%
763
9.5%
4.82
32.5
89.1%
3
3.5
266,651,062
17.8%
1,419
17.7%
4.86
34.5
94.7%
3.5
4.0
393,577,849
26.2%
2,029
25.3%
4.84
35.6
97.9%
4
4.5
461,812,406
30.8%
2,402
29.9%
4.84
36.3
97.6%
4.5
5.0
173,289,548
11.5%
839
10.5%
4.66
39.5
97.7%
5
5.5
-
-
-
-
-
-
-
5.5
6.0
-
-
-
-
-
-
-
6
6.5
-
-
-
-
-
-
-
7
>
-
-
-
-
-
-
-
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
-
Total
82
Aggregate
Outstanding
Not. Amount
Weighted Average
3.76
Minimum
0.67
Maximum
4.99
-
-
-
-
* The Loan to Income Ratio is defined as: (Current Principal Balance – Total Savings Amount) / Total Income
** Total Income is defined as the sum of the income of the primary and secondary borrowers
*** Income information as of mortgage loan origination date
-
-
Debt service to income
From ( > )
Until ( <= )
Unknown
-
<
5.00%
% of
Total
-
-
5%
2,664,808
10%
27,225,012
10.00%
15%
15.00%
20%
20.00%
Nr of
Borrowers
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
-
-
-
-
-
0.2%
27
0.3%
2.78
30.1
46.7%
1.8%
225
2.8%
3.90
31.2
61.5%
174,737,824
11.6%
1,059
13.2%
4.49
32.1
87.5%
604,016,591
40.2%
3,145
39.2%
4.78
34.9
97.1%
25%
619,043,790
41.2%
3,181
39.6%
4.94
37.2
97.0%
25.00%
30%
70,470,611
4.7%
372
4.6%
5.24
37.3
96.1%
30.00%
35%
3,160,634
0.2%
18
0.2%
5.19
29.6
86.7%
35.00%
40%
301,883
0.0%
2
0.0%
5.26
21.3
73.9%
40.00%
45%
79,362
0.0%
1
0.0%
5.84
11.8
54.1%
45.00%
50%
-
-
-
-
-
-
-
50.00%
55%
-
-
-
-
-
-
-
55.00%
60%
-
-
-
-
-
-
-
60.00%
65%
-
-
-
-
-
-
-
70.00%
>
-
-
-
-
-
-
-
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Total
Weighted Average
83
Aggregate
Outstanding
Not. Amount
19.2%
Minimum
2.1%
Maximum
44.1%
* The Debt Service to Income Ratio is defined as: (Debt Service Amount) / (Total Income / 12 months)
** Debt Service Amount is defined as the sum of the monthly scheduled interest and scheduled repayment amount to be paid by the Borrower.
*** Total Income is defined as the sum of the income of the primary and secondary borrowers
**** Income information as of mortgage loan origination date
Employment status borrower
Aggregate
Outstanding
Not. Amount
Description
Employed
1,496,806,434
Pensioner
Total
% of
Total
99.7%
Nr of
Loans
7,990
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
99.5%
4.82
35.6
95.3%
4,894,080
0.3%
40
0.5%
3.70
28.4
53.9%
1,501,700,514
100.0%
8,030
100.0%
4.81
35.5
95.1%
Loanpart payment frequency
Description
Aggregate
Outstanding
Not. Amount
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
Monthly
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Total
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Guarantee type (NHG / non-NHG)
Description
84
Aggregate
Outstanding
Not. Amount
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
NHG Guarantee
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Total
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
* Employment status information as of mortgage loan origination date
Originator
Originator
Aggregate
Outstanding
Not. Amount
AEGON Hypotheken B.V.
893,083,110
59.5%
8,920
57.0%
4.78
31.9
96.5%
AEGON Levensverzekering N.V.
608,617,404
40.5%
6,717
43.0%
4.87
40.8
93.1%
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Total
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
Servicer
Servicer
Aggregate
Outstanding
Not. Amount
AEGON Hypotheken B.V.
893,083,110
Total
% of
Total
Nr of
Loanparts
59.5%
8,920
% of
Total
Weighted
Average
Coupon
Weighted
Average
Maturity
Weighted
Average
CLTOMV
57.0%
4.78
31.9
96.5%
608,617,404
40.5%
6,717
43.0%
4.87
40.8
93.1%
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Weighted
Average
Maturity
Weighted
Average
CLTOMV
Capital insurance policy provider
Insurance Policy Provider
Aggregate
Outstanding
Not. Amount
AEGON Bank N.V.
496,005,903
33.0%
4,372
28.0%
4.93
26.9
97.9%
434,617,180
28.9%
4,052
25.9%
4.97
24.7
94.3%
No policy attached
571,077,431
38.0%
7,213
46.1%
4.59
51.3
93.4%
1,501,700,514
100.0%
15,637
100.0%
4.81
35.5
95.1%
Total
85
% of
Total
Nr of
Loanparts
% of
Total
Weighted
Average
Coupon
Appendix:
Priority of Payments
86
Simplified interest priority of payments (prior to enforcement)1
Available Revenue Funds
Mortgage Loan Interest
Senior Expenses and Servicing Fee
+
Interest on Issuer Accounts
Proceeds credit insurance (interest)
+
+
Prepayment penalties
Net foreclosure proceeds of mortgage
receivables (relating to interest)
Cash Advance Facility drawings
=
Interest Rate Swap Payment
+
Interest on Class A1 /A2 Notes pro
rata and pari passu
+
Replenishment of Class A PDL
+
Interest on Class B Notes
+
Replenishment of Class B PDL
+
Interest on Class C Notes
Swap receivables
Reserve Account drawings, if any
Repurchase or sale proceeds
(interest)
Post foreclosure proceeds, if any
+
Replenishment of Class C PDL
Replenishment Reserve Account
Repayment of Class D Notes 2
Available Revenue Funds
Subordinated Swap Payments
Gross up amounts under
Advance Facility
Cash
Deferred Purchase Price to Seller
1This
87
is a simplified overview. Please refer to Preliminary Prospectus for full description of priority of payments and of the available revenue funds.
FORD only
2After
Simplified principal priority of payments (prior to enforcement)1
Available Principal Funds
Mortgage Loan Principal repayments
and prepayments
+
Credit insurance proceeds (principal)
Net foreclosure proceeds of mortgage
receivables (relating to principal)
Repurchase / Sale of Mortgage Loans
Credits to PDL
Participation Increase
Switched Insurance Savings
Participation (from Conversion to
Savings)
+
+
+
+
+
=
Purchase of Further Advance
Receivables2
Principal on Class A1 Notes until
fully redeemed
Principal on Class A2 Notes until
fully redeemed
Principal on Class B Notes until
fully redeemed
Principal on Class C Notes until
fully redeemed
+
Partial prepayments
Available Principal Funds
1This
is a simplified overview. Please refer to Preliminary Prospectus for full description of priority of payments and of the available principal funds.
to the FORD only and subject to specific criteria identified by the Additional Purchase Conditions including a [1]% cap of the aggregate outstanding
balance of portfolio mortgage loans
2Up
88
Selected sources:
•
Central Bureau of Statistics (Centraal Bureau voor de Statistiek, CBS)
•
Centraal Planbureau (CPB)
•
Debt Restructuring Act (Wet Schuldsanering Natuurlijke Personen, Wsnp (www.wsnp.rvr.org)
•
Dutch Banking Association (Nederlandse Vereniging van Banken, NVB)
•
Dutch Central Bank (De Nederlandsche Bank, DNB)
•
European Central Bank (ECB)
•
Eurostat
•
Fitch Research
•
Homeownership Guaranteed Fund (Waarborgfonds Eigen Woningen, WEW)
•
International Monetary Fund (IMF)
•
Land Registry (Kadaster)
•
Ministry of Housing, Spatial Planning and the Environment (Ministerie van Volkshuisvesting, Ruimtelijke Ordening en Milieu, VROM)
•
Moody‟s Analytics
•
National Credit Register (Bureau Krediet Registratie, BKR)
•
National Institute for Family Finance Information (Nationaal Instituut voor Budgetvoorlichting, NIBUD)
•
OECD
•
Preliminary prospectus
•
S&P Ratings Direct Economic Research
•
State of Affairs of Social Security (Ministerie van Sociale Zaken & Werkgelegenheid)
WWW.Aegon.COM
For questions relating to SAECURE please contact:
Ed Beije
Senior Vice President of Corporate Treasury
T: +31 70 344 8407
E: [email protected]
Sibylla Bantema
Director Mortgage Operations
T: +31 58 244 3131
Sander Maatman
Director Capital Management & Policies
T: +31 70 344 7016
Niels Roek
Manager Funding
T: +31 58 244 3491
For questions relating to AEGON please contact:
AEGON Investor Relations
T: +31 70 344 8305
WWW.Aegon.COM
Bas Warmerdam
Corporate Treasury
T: +31 70 344 8361
Thank you

Aegon Saecure 14 NHG

Transcription

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