Indue’s securitisation product, Trinity, is a mortgage securitisation warehouse which pools mortgage assets from various originators until sufficient size is reached to issue mortgage-backed securities to the market. This offers a range of potential benefits:
- Increased capital and liquidity management options
- Reliable long-term funding matching asset maturity date to investment maturity date
- Choice of selling existing loans or writing loans directly off balance sheet
- Ability to diversify the type of loan and mortgage offerings to members
- Transfers credit risk inherent in housing finance from the originator to Trinity
- Diversification from retail or unrated wholesale funding into rated wholesale funding markets
- Allows financial institutions to preserve valuable client relationships through a sub-servicing arrangement.