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Home equity lines of credit (HELOC)
Revolving Trust Securitization

• Help Customer in Offering HELOC Securitization
• Enable A New Revenue Stream For the Mortgage Client
• Avoid Transaction Costs Model
• Dynamic in nature
• A REMIC (Real Estate Mortgage Investment Conduit) - a vehicle for issuing mortgage-backed securities that allows the issuer to treat the security as a sale of asset for tax and accounting purposes
• Since payments and Draws are not predictable, securitization of these loans needs special handling

Our home equity lines of credit Offering

As a package

• Data Update Module (From Alltel)
• HELOC Datamart Model
• HELOC/REMIC
• Computational Model

Custom Developed

• Maintenance Module
• Reporting Module

The Revolving Trust Model

• The premise behind the revolving trust REMIC certificate is to match the structure of the trust to the revolving nature of the underlying loans. In a revolving deal structure new draws are added back into the trust. This slows down the prepayment rate and gives lenders a mechanism for funding new draws inside an existing deal, rather than having to continuously re-securitize balances.
• The revolving trust consists of three phases:
  • The revolving phase
  • The managed amortization phase (MAP)
  • The rapid amortization phase (RAP)

Features of Our Model

• Set up an Investor Pool
• Monthly Processing:
  • Designed to perform the computations based on the current phase of an Investor Pool both in Revolving and Non Revolving Trust Model
  • Allocates monthly Principal payments (FIFO)
  • Allocates monthly Draws
  • Computes Pool Closing Balance
  • Computes Average Daily balance of the Pool
  • Computes Allocation of Finance Charge
  • Computes Weighted Average Coupon
• Based on these figures, Real Estate Mortgage Investment Conduit Certificates are produced
• Reports are produced as an XLS or as PDF
• Loans can be added from warehouse or removed from any investment pool to warehouse
• And audit trail is maintained for such activities
• Web Based application
• Pool, Loan and Participating Balance level history is maintained
• Loan balance can be securitized in different investor pools
• Interest is allocated on Average Daily Balance of loan balance in Investor pools

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