BancCap Investors' Co-securitization Execution Program (BICEP)

BancCap offers a unique shared securitization program designed to fit the needs of mortgage originators who wish to take advantage of the economics and flexibility of an asset backed securitization program, but who do not have sufficient volume of their own product to make a securitization economically feasible. BICEP offers:

  • Warehouse financing using an off balance sheet structure.
  • Premium financing on aggregated loans.
  • Interest "carry" participation on loans being aggregated.
  • Both flow and mini-bulk aggregation options.
  • Rapid approval of loans going into the program.
  • Premium securitization execution.
  • Ownership interest in securitization residual cash flows related to each participant's own loans.
  • Loan level and securitization pool level reporting on a monthly basis.

Our program allows originators (Participants) to sell their loans, servicing released, into a shared securitization managed by BancCap. BancCap securitizes the loans using structures designed to generate upfront cash to the Participant at levels similar to what they would receive in a whole loan sale. In addition, each Participant owns an interest in the back-end residual cashflows related to its own loans in each securitization.

BancCap's program establishes certain guidelines for loans submitted into the program, but generally loans originated under your normal guidelines will be eligible. In order to become a participant, you must be able to contribute at certain minimum amounts to our quarterly securitizations, and meet basic participant guidelines.

BancCap's Shared Securitization Programs are managed from start to finish by BancCap. Distribution of future cash flows is managed in conjunction with the trustee on each securitization. By creating virtual bond structures for each Participant, BancCap has the ability to allocate costs, cash proceeds, and residual cash proceeds to the Participants based on the actual value of the individual loans contributed, and the actual performance of the individual loans over the life of the transaction. BancCap's sophisticated pricing model assigns values to each loan in the program. Its deal monitoring systems track payment, delinquency, loss and other performance information of each loan for each Participant. Your proceeds will reflect the quality and performance of your loans relative to other participants' loans.

BICEP is for sub-prime and Alt-A loans underwritten within Participant program guidelines. It is an excellent way for companies to enter the securitization market gradually, participating in the BancCap program and establishing some history until such time as they are ready to securitize on their own. With over $15 billion of securitization experience, the management of BancCap is well versed in the asset backed market and able to work with your internal staff to ensure a smooth execution. Call us for more details.

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