To improve liquidity, earnings, and return on assets, financial institutions, like banks, trust companies, and loan companies, often create pools of mortgages that can be sold to investors as mortgage backed securities (MBS). Although MBS received a tarnished reputation during the financial crisis in 2008 many of our customers actually increased their MBS activity (more on this below). Furthermore, our customers remained very healthy from a liquidity, earnings, and growth standpoint.
Why did our customers remain so healthy during the financial crisis while many other financial institutions had to retreat? There are many answers. Sound judgment and adequate regulation are a few of the answers that come to mind. However, SIT's Portfolio Plus banking software played a role as well.
Although this web page focuses on Canadian-centric securitization vehicles, SIT's Portfolio Plus banking software is not limited in this way. SIT has customers in Canada, the UK, Ireland, and the Caribbean. Using Portfolio Plus, virtually any asset (e.g. car loan, agricultural loan, etc.) can be securitized.
Here are three ways SIT's Portfolio Plus banking software helped our customers face the financial crisis:
Note: Portfolio Plus enables securitization of virtually any asset—not just mortgages.
Users of Portfolio Plus can create pools of mortgages that meet the criteria of the CMHC (or other insurance program) and are suitable for sale to investors in today’s risk averse market.
An overview of the steps required to create a pool of mortgages that can be securitized, is outlined below.
Portfolio Plus users first create a temporary pool and name that pool (e.g., “P1”) and then use Portfolio Plus to select various criteria so these mortgages can be associated with the named pool.
Examples of that selection criteria include:
Once the user is satisfied with their selection, this pool is moved to a “new company” or a “branch” so it can be tracked separately. The user then selects an Issue Date as well as a Settlement Date.
The user reviews and modifies, if necessary, the Insurer Pool #, the Description, the Issue Date, and the Settlement Date.
Users can add or delete loans from a temporary or Issued Pool.
Various reports are available to the users including:
Portfolio Plus works well with mortgageHub® (available from TAO Solutions) which is a fully integrated mortgage loan funding, securitization, and whole loan portfolio management system built for the Canadian mortgage industry. It’s functionality includes:
Better mortgage software, by itself, isn't all you need to win in today's competitive lending market. You need a source of deposits, better liquidity options, and a complete banking software platform to ensure continued growth. The Plug-In Banking TM capability of Portfolio Plus ensures that you can start with only the modules you need today and then expand your functionality later as you grow. If you have any questions please do not hesitate to phone us at 905-640-0808 and ask for Domestic Sales (within Canada) or International Sales (outside of Canada).
Note: SIT Portfolio Plus is a trademark of Strategic Information Technology (SIT). mortgageHub is a registered trademark of TAO Solutions.
Questions? Call us.
This page was created and/or refreshed on April 24, 2017 @ 10:26:24
by Strategic Information Technology (SIT) Ltd., Stouffville, Ontario, Canada
The page subject is: Mortgage Backed Security Software, Mortgage Pooling Software