Mortgage

HELOC Revolving Trust Securitization

Challenge:

The HELOCs serviced on many servicing systems lack a revolving securitization mechanism. These systems are not capable of producing reports, which the Investor Accounting Department requires to produce the ‘Revolving Home Equity Loan Asset Backed REMIC Certificates’.

Visionet Systems was asked to augment the system making it capable of revolving securitization. Visionet was selected for the project because of its

  • Reputation of high quality people specializing in diverse technologies
  • Knowledge of the mortgage banking industry
  • Ability to incrementally enhance and redesign the system without disrupting operation and  providing quick return on investment

Solution:

Visionet completed the following tasks in less than three months and delivered a turnkey solution.

  • Mapped the data sources from the legacy servicing system for preparing a ‘REMIC Servicing Certificate’ on the revolving trust structure.
  • Devised a strategy for completing the report design to produce the required ‘REMIC Servicing Certificate’. The most important element in this report design was to arrive at the precise computational definition” for each line item required on the REMIC Servicing Certificate.
  • Defined and implemented the operational architecture of the reporting system to be used on an on-going basis to produce the REMIC servicing certificates during the Revolving, Managed Amortization and Rapid Amortization phases. This included the ability for various draws of one HELOC to be assigned to multiple REMICs.

Results:

The results were:

Customer gained the capability to perform HELOC securitization on the revolving trust model without paying additional transaction fees to the legacy servicing software vendor.

ROI: 1 month payback on the investment.