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
Download free Real Estate Mortgage Investment Conduits (REMIC) System Brochure
Download PDF
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