NorthBrook has built its administrative technology platform (the “Funding Engine”) in response
to the recent demise of the North American securitization market. The securitization
market collapsed, not because of widespread deterioration in the underlying assets,
but principally from a lack of transparency which necessitated almost complete reliance
on the rating agencies.
NorthBrook developed the Funding Engine to address those flaws. The program, which
utilizes proprietary technology developed and owned by NorthBrook, allows regulated FIs
to originate, purchase and sell portfolios of assets among themselves to assist
in managing their liquidity and asset mix. Portfolios would typically consist of
quality consumer assets, such as mortgages and auto loans, but can also include conditional
sale contracts and leases for commercial clients.
NorthBrook’s platform provides levels of transparency that can meet the new, higher standards of the regulators as well as
those of rating agencies. In addition, its multi-funder capabilities
allow for new levels of capital balancing, as the FIs have future options to sell
some or all of their lending assets (again with maximum transparency) at a later
date if desired.
The objective of the Funding Engine is to provide functional and regulatory-compliant
platforms to the lending sector in order to access investment dollars that were
previously not available or withdrawn by Investors in reaction to recent market
disruptions.
The Funding Engine enhances proposed funding facilities by providing potential funders
and equity and sub-debt investors (collectively “Investors”) with a broad administrative
platform that can:
- provide loan and portfolio administration the Investor does not have within its own operation
- deliver advanced monitoring, portfolio management and investor reporting that supports regulatory and Basel II compliance
- convey the higher levels of transparency investors now require
- manage rating agency requirements on behalf of the Investor
By bringing these options to institutional funders, large or small, NorthBrook eliminates
barriers that previously excluded many institutions and equity firms from lending
sector investments.
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