Loan Software with Securitization Support
A solution for optimizing capital and lowering credit risk
There's a loan software solution for lenders that has been gaining more attention recently: Securitization
Securitization: An Innovative Approach to Financing Your Lending Operations
Access Quick Capital
Benefits of a Lending Platform with Securitization from GOLDPoint Systems
- Improved liquidity and balance sheet flexibility
- Diversified funding sources & lower cost of capital
- Operational efficiency and scale
- Enhanced investor confidence & transparency
- Risk transfer and capital relief
- Product diversification and growth
- Regulatory compliance and audit readiness
Features of GOLDPoint Systems' Securitization Solutions
- Loan pooling and bulk management
- Tranche modeling/Credit enhancement
- Investor & trustee reporting/Servicer portal
- Integration with loan servicing & general ledger systems
- Compliance, monitoring and risk management
- Scalability & flexibility across asset classes
- Workflow automation & efficiency
Assets Pooled and Repackaged Into Interest-Bearing Securities
Is Your Loan Software or Financial Partner Constraining Your Growth?
How Lowering Credit Risk Benefits Your Lending Operations
The securities involved in securitization are split into tranches where the assets share similar qualities with one another (interest rate, loan classification, etc.). Different tranches can carry different risks and exposure within a portfolio.
Several benefits are available for an investor to participate in securitization, here are a couple:
- Higher Rate of Return – Better chance of having a higher rate of return on revenue-generating assets.
- Portfolio Diversity – Allows investors to diversify their portfolios and gain access to high-quality assets that they normally could not invest in.
Securitization with GOLDPoint Systems
Loan Software with Securitization
Lower Capital Requirements for Lenders
Some legal or regulatory requirements might require entities to limit the amount of capital. Securitization moves those assets “off-balance-sheet”.
Loan Liquidity
Assets that likely would have taken years to generate cash flow can now be quickly done as a lump sum. This frees up capital and generates a new financing source instead of borrowing from standard financial institutions.
Increased Credit Rating
Removing receivables off the balance sheet may help raise the institution’s credit rating, allowing it to borrow funds at a lower rate. In essence, the institution is transferring the potential default risk to the investors.
Fee Income
By moving accounts off the balance sheet, interest income is now being replaced as fee income when servicing those loans for the investors.
Securitization Capabilities within our Browser-Based Loan Software
Worried About Your Line of Credit Being Called?
Relying on a lone source of capital can jeopardize your operations. Explore how GOLDPoint Systems' securitization tools can offer diverse financing solutions to ensure the continuity of your lending business.
- Bulk Update – Quickly securitize a new pool or top off an existing pool of loans in seconds using our bulk update utility.
- Loan Reporting – Securitization reports and borrowing base certificates can be tailored to meet your investors' specific requirements and scheduled to run daily, offering comprehensive tracking of pool activity and up-to-date status on each investor portfolio.
- Document Vaulting – Ensure the security of original electronic documents by restricting access exclusively to the loan owner.
- Online Loan Portal – Provide your investors with view-only access to their securitized loans through a secure web portal. This access includes detailed loan information, transactional history, and electronic documents.
- Loan Renewals – Loans can be automatically refinanced into an existing investor pool at the time of origination.
- General Ledger Tracking – Detailed loan transactional data can be posted into separate General Ledger accounts according to the investor pool.
Want to Ask Robert More About Securitization?
Schedule a free demo and find out for yourself.