Find out more about our securitisation and standby servicing solution and the benefits of partnering with HML.

1. STANDBY SERVICING
A strategic solution from HML

2. Key facts about HML
Over 25 years experience managing customer accounts for
some of the world’s biggest financial institutions
• Service or host over 370,000 customer accounts
• Residential, BTL, Commercial, Second Charge
• Wholly owned subsidiary of the Skipton Building Society Group
• FCA regulated
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1,300 employees based across 3 sites
• Skipton, Glasgow, Derry
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Strong ratings
• Standard and Poor’s
• Fitch Ratings3
Full end to end lifecycle management –
Primary and Special Servicing
• New mortgage origination
• Regulated Legal Title holding entity
• Post completion servicing and full arrears management capability
• Standby Servicing
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3. Standby servicing &
cash/bond administration
• HML is the leading standby servicer in the UK
• 120 ABS transactions for 20 standby clients
• £50bn+ standby servicing portfolio
• Residential, buy to let and commercial assets
• Motor finance and personal lending standby
available
• We have a specialist team in place who work with
Issuers, Rating Agencies, Trustees and Investors
Some of our
clients include…

4. Securitisation services
Service includes...
RMBS and Covered Bond
standby:
• Hot or warm options
ranging from 48 hour
hot standby through to
90 day warm standby
arrangements
• Motor finance standby
• Personal lending standby
• Warehouse standby
• Cash bond/cash
manager standby
• In the event of invocation, you want to be sure
your usual customer service standards will be
maintained
• Your investors need the reassurance that funds
flow will not be disrupted and normal collections
can continue
• With a proven track record of client take-on, HML’s
full standby service provides reassurance that a
solid back up is in place
• Upon invocation, your portfolio can be transferred
to HML or remain at the current site depending
upon scale and complexity to ensure business
continuity

5. The benefits of
partnering with HML
PROTECT
against failure of the
primary servicer or cash
bond administrator,
and satisfy the rating
agencies
• Pre-securitisation
protection for funders
• Post-securitisation
protection for asset
owners
CONFIDENCE
that the continuity of
your servicing and cash
bond administrator will
never be compromised
ENHANCE
your transaction
and risk management
structures
• Our experience will
ensure a smooth
take-on process in the
event of invocation
• A proven track record
of client take-on

6. We pride ourselves on the strength
of our client relationships and the
mutual value that they generate
"HML was the obvious choice to
support our securitisation
programme when we needed to
appoint a replacement standby
servicer following Global Home
Loans decision to exit the market.
Our relationship with HML continues
to grow in a spirit of true partnership
and we are impressed by the rigour
and disciplined approach taken in
providing the standby servicer role,
giving comfort to transaction
counterparties and investors alike.”
John Harvey
Head of Structured Finance
“We have a good relationship
with HML and their reputation
and credibility were absolutely
key to supporting us as Standby
Cash/Bond administrator on our
Business Mortgage Finance
transactions. I must add that
their approach to annual reviews
is extremely thorough and
professional.”
Anuj Nehra, Associate Director,
Structured Finance and Reporting
Our clients share this view, and are happy to
share their experiences with you
“Recent adverse market conditions
resulted in Principality Building
Society needing to appoint a
standby servicer to support its
covered bond programme. No
other service provider could match
HML’s skill and expertise in this
area and they were quick to engage
and negotiate a contract which
provided the Rating Agencies
with the necessary comfort.”
Warren Justice
Director of Finance

7. Our credentials
PROJECT: Tenterden
Funding ‘Hot’ standby
Results delivered:
The UK’s first true ‘hot’ standby
for an RMBS
The portfolio was boarded to the
HML platform and updated data is
received daily
A full service specification, credit
management policy and fully
compliant letter suite was agreed
HML have the capability to
assume the full servicing of the
mortgages within 48 hours
PROJECT: Turbo II
and III ‘warm’ standby
Results delivered:
A ‘warm’ 60 day standby for two
securitisations of auto finance
loans
A solution that utilises the
portfolio owners current third
party servicing software solution
HML have the capability to
segregate the client’s assets on
a mirror of their current system,
and assume full servicing within
60 days
PROJECT: Gosforth
Funding ‘warm’ standby
Results delivered:
A ‘warm’ 90 day standby
capability for the Gosforth
funding programme
HML were selected to act as
standby on the Gosforth Funding
2012-1 and 2012-2 transactions
After the two new deals were in
place, a standby capability was
retrospectively added to the two
existing deals, 2010-1 and
2011-1

8. HML is externally credited as being
Europe’s highest rated servicer
S&P ‘above average’ primary servicer rating and
‘above average’ special servicer rating (first
awarded in 2008 and upgraded in 2011)
RPS2+UK (Prime) and RPS2+ (Sub-prime)
ratings held for the past 7 years
RSS2- (Special Servicer) first awarded in
2009 and upgraded in 2010 and 2011
RPS2 Ireland Primary Servicing; this is the
highest first time residential primary servicer rating
awarded by the agency in Europe since 2006
What they say
“Continued investment in technology and
implementation of various enhancements, resulting
in numerous process efficiencies particularly
around contact centres.”
What they say
“From our analysis, it is evident that HML has
the resources in terms of people, systems and
premises to enable it to manage its growth targets
without compromising service.”

9. HML’s position in the
capital markets
Experience & skills to
rapidly take on servicing
of assets in an
invocation scenario
Primary and Standby
Servicer and Cash Bond
capability for securitisations
and covered bonds
Primary and Standby
Servicer to warehouse
funding lines provides
reassurance
The UK’s largest third
party administrator to
service your assets
Solid credentials with
rating agencies enhances
deal structures

10. HML’s multi-site strategy
GLASGOW
(opened 2007)
SKIPTON HQ
(opened 2010)
DERRY
(opened 2004)
Our operations management and
site strategy is designed to enable
us to action a flexible approach to
supply and demand management.
Our workforce
Significant number of our operations staff
are multi-skilled
All locations are able to support any of
our processes
We can quickly tap into employment pools
of skilled and experienced staff rather than
relying on temps
We can redeploy work rapidly between sites
Site strategy can evolve to meet client needs

11. HML’s market leading experience
can deliver real benefits to you
The benefit of the most experienced standby
servicer in the UK, and the reassurance of the
largest third party administrator
Our experience means we minimise
the impact on your resources
We can satisfy all your key requirements:
Systems – Robust, flexible and scalable
Resources – Three sites spread across the UK
Processes – A proven track record of major project delivery
People – The experience and skills you need
Stability – A key part of the Skipton Building Society Group,
with an award winning BCP

12. In summary; working in partnership
with HML provides you with reassurance
Give your shareholders and board confidence by having
the market leader supporting your funding initiatives
Protect investors, enhance transactions and ensure
continuity of cash flows
Protect warehouse funding lines in the event of
insolvency of the originator/primary servicer
Enhance your deal structures and support your activities
in Asset Backed Securities
- Pre-securitisation protection for funders
- Post-securitisation protection for asset owners
Mitigate risk by choosing the market leading, regulatory
compliant standby servicer for your transactions

13. STANDBY SERVICING
A strategic solution from HML
APPENDIX

14. Project delivery approach
and capability
• Highly experienced client on-boarding team led by Programme Directors
with 20 years plus Financial Services experience and a 100% success rate
in being able to migrate portfolios
• All project managers Prince2 accredited
• Proven methodology for client take on which is well documented and reviewed regularly,
including project plans that capture 3,500 activities to support boarding of loans
• Standard templates to ensure certainty and speed of delivery
• Tried and tested approach with over 10 take-on projects delivered in the last 3 years
100+ people
involved in
IT development
and Business
Change
Launch of new
clients many
of whom now
have portfolios
of £5bn plus
Management of
large scale data
migrations of
between £3bn and
£5bn within agreed
timescales
Set-up of new
sites including
800+ seat
centre in
Skipton
Delivery of several
large scale IT and
telephony
infrastructure
projects including
virtualisation
of 100+ servers

15. Client boarding projects follow the New Client Take On Framework
which provides a structured approach based on a combination of
best practice and HML’s extensive experience in this area...
Over 65 migrations
performed in the
last 3 years
£3bn, 25,000
accounts transferred
in December 09 within
120 day project plan
SMS and HML merger,
10 clients migrated, 22
funders, 32 pools and
c.23,000 accounts
All merger migrations
completed within plan,
across 5 phases in a 6
month timeframe
The most experienced customer
migration specialist in the market
Dedicated project team to work closely with your team, led by an
experienced and qualified Programme Manager with business
analysis, SME and project office support

16. Implementation – Example
high-level visual plan
Month 4Month 3Month 2Month 1Workstreams
1. Governance
Project boards
Client update meetings
Workstream meetings
HML Management Products
2. Process Definition
Gap analysis/requirements
3. Delivery
Data mapping/migration
Technical Infrastructure
Operational capability
4. Acceptance Testing
Test preparation
Test execution
5. Integration Approach
Integration plan review
6. Closure
Lessons learned
Project kick-off
Bank to Provide Initial Data Extracts
Standby Capability ‘Live’

17. Full-Transfer Invocation
(inc. migration over time)
Securitisation Services – Process
Questionnaires are provided to
potential Clients for completion
and review by HML prior to a
due diligence visit.
All potential risks are
comprehensively evaluated and
mitigated prior to any contracts
being entered into.
Systems and processes are
reviewed annually, data maps
refreshed and the Trustee or
Funder notified that the contractual
Standby Servicer obligations are
fully complied with.
All activity is referenced against
a bespoke project plan for each
standby client.
Immediately upon receiving
notification of invocation, we
convene a project team to
implement the project plan to
board the loans within the
contractually agreed timeframe.
Pre-Contract Review Annual Standby Due
Diligence Process

18. Standby Mortgage Administration
HML provides seamless
continuity of loan administration
in two key scenarios in the event
of contractual invocation:
• Asset securitisation
• Warehouse funding
Provide Standby Mortgage
Administration to over 18
clients on over 90 transactions
from 10 different mortgage
administration systems.
Invocation is managed by a
designated Client Take-On Project
Manager and team, using our
invocation plans and templates
After invocation portfolio can be
transferred to HML or remain at
the servicers’ site depending
upon scale and complexity
Protect warehouse funding in
the event of the insolvency of
the originator or primary servicer
Mitigate risk by including
a market-leading,
regulatory-compliant servicer
in your deal structures
Protect Investors, enhance
transactions and provide
continuity of cash flows in
the event of invocation
Provision of annual Standby
Due Diligence
Notification to the Trustee or
Funder to evidence HMLs
level of preparedness
Capable
ReassuringExperienced

19. Standby cash/bond administration
Primary and Standby options for
Cash/Bond Administration and
Cash Management
Agile in approach and have
worked closely with clients in
providing support to bespoke
funding arrangements
Excellent relationships within
the industry including Rating
Agencies, Trustees, Issuers,
Lawyers, Lead Managers, etc
Dedicated securitisation services
team with significant industry
experience across a range of
structured finance products
Provide Standby Cash/Bond
Administration to 9 clients on
over 80 transactions
Residential and Commercial
Securitisations, Covered Bonds and
bespoke funding arrangements
Capable
CredibleExperienced