A neutral standard that lets loans originated by different lenders pool into rated, institutionally-ownable securities — relieving the supply, cost and product constraints of the market at once.
With no secondary market, originators carry loans on their own balance sheet. Total supply is capped by the balance sheets of a handful of lenders, and the floor cost of capital stays structurally high.
Borrower options are each sub-optimal — and today’s market structure supports little beyond vanilla Lombard loans.
Smaller and mid-tier originators are locked out of cheap capital: the fixed costs of rating, structuring and reporting do not amortise over their volume.
Institutional capital cannot reach the asset. Insurers, reinsurers, pension funds and banks can hold rated securities — not bespoke whole loans.
Standardised origination, servicing, collateral management and reporting that make loans from many originators homogeneous enough to pool — something no single originator can manufacture alone.
Pooling conforming loans into bankruptcy-remote vehicles, coordinating the rating and credit enhancement, and distributing the tranches to institutional accounts.
A revolving facility that funds origination between securitisations. The loan transfers off the originator at the moment it is written, so it is never carried on a single balance sheet.
Each cohort of lending is funded by the proceeds of the prior cohort’s securitisation. Counterparties are shown generically.
A borrower posts BTC to a qualified custodian; the loan is written to the conforming standard.
The loan transfers into a bankruptcy-remote warehouse at origination — the originator never holds it.
Seasoned loans are pooled and true-sold into a securitisation vehicle that issues notes in tranches.
Rating agencies rate the notes; structural and credit enhancement supports the senior tranche.
Insurer and reinsurer accounts buy the senior tranche; structured-credit funds buy the mezzanine.
Dollar proceeds return to the warehouse to fund the next cohort of originations.
It cannot tilt the standard toward its own book, because it has no book. Neutrality is built into the structure — which is what lets every originator and every capital source rely on it.
Reach out to discuss the conforming standard, the securitisation mechanics, and where it fits your origination or your mandate.