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The AFS Securitization solution is built to meet the needs of financial institutions in today's difficult operating environment. Whether a financial institution's business model incorporates securitized sales to accommodate an "originate and sell" model or selective sales of distressed assets, low margin performers to improve risk-based capital and net interest margins, or pay down or payoff high interest debt, AFS executes against the organization's strategic plans.
By automating the entire process from origination through pool selection to investor reporting, AFS reduces labor costs, increases productivity, and facilitates additional fee opportunities. Equally important, automation controls operational risk by eliminating potential manual process errors such as mis-postings to General Ledgers and missed, late, and incorrect movement of custodial funds (as defined by the securitization agreement) that can trigger specific securitization covenant non-compliance.
Finally, because of the robust data history retained on the AFS Securitization system, the requirement to provide additional credit insurance or subordination provisions for these securitized sales is reduced through an actual risk transfer, significantly reducing
Benefits
Financial institutions can utilize the securitization asset-backed market to achieve its Portfolio Management goals. AFS Securitization provides a cost effective solution that will allow you to process the total securitization workflow, accounting, cash transfer, and investor reporting without operational risk.
Structure
Can accommodate any Asset-Backed structure:
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REITS
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CLOs
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CDOs
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Commercial Paper Conduits
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CMOs, and more
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Can process any loan type:
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Commercial Real Estate
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Small Business and SME
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Commercial
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Corporate
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Asset-Based
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Consumer
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Dealer Floor Plan
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Home Equity and more
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Has extensive loan product capability:
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Supports all pricing options including fixed, variable, adjustable, and LIBOR
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Integrated collateral management for all types of secured lending
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Unlimited fee capability, earnings option, servicing and pass-thru fee types
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Unlimited effective dating of financial transactions for corrections and adjustments
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Complete support for total customer exposure in a multi-bank organization
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Loan level profitability through cost of funds and fixed cost accounting
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Complete troubled debt accounting for non-accruals, provisioning, and charge-offs
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Comprehensive recovery and collections support
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Mark-to-market portfolio accounting
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Selection
Loans can be selected for sale in an automated process:
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A seller can automate the process of selecting eligible loans for sale without any operational risk.
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Sale
The sale to the Special Purpose Entity (SPE) is fully automated:
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On the sale date the loans are removed from the financial institutions' balance sheet and recorded on the books of the SPE. After the sale occurs, all the on-going accounting entries and cash transfers to the Trustee are processed automatically.
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Security
Sold loans can not be re-sold:
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After the loan is "locked down" on the loan system eliminating any re-sale of pledging of sold assets.
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Solution
AFS Securitization can process the total workflow, accounting, cash transfer, and investor reporting required in today's rapidly changing Asset-Backed market:
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The solution can securitize loans from AFS and can also process on non-AFS vendors.
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