Securitization is an optional subsystem that provides an automated means for commercial securitization of both Small Business Administration (SBA) and conventional loans. This subsystem will automatically create the investor records for those loans and lines selected to be included in a pool. The Securitization process will also automate the establishment and processing of the fees associated with the several forms of commercial securitization.
The Securitization subsystem allows pool characteristics to be established, and individual loans/lines to be added to the pool. These records can be supplied either online or through an offline process. A file of these loans/lines is created for review. The characteristics of the pool can be modified up to the date of the sale. If necessary, the sale of the pool can be cancelled, or individual loans/lines can be removed from the pool.
The processing of the sale results in the creation of investor records with corresponding billing records, pending transactions, and servicing fees. If the sale is backdated, the commercial securitization process captures all necessary rate changes and monetary transactions needed to be applied to the investor records.
The commercial system handles the accounting of securitizations. Payments are automatically disbursed to each transfer agent. All necessary general ledger entries are made for each investor record.
If needed, a pool of loans can be transferred from one trustee to another. The investor records are automatically removed from one trustee and established under the new trustee. Again, billing history, pending transaction, and fees are established for the new trustee by the Securitization process.
The Securitization subsystem provides complete reporting, including details of the sale of a pool, transactions generated for investor records, and error reporting.