Mambu Banking Engine

Ideas aimed to improve the current experience provided by the Mambu Banking Engine.

Partial Selling / Securitization of Loan Portfolios

Standard market practice among some lending institutions is to sell a number of loan accounts to 3rd party investors, optionally still managing them but taking the loans off their books.

This can be done in full i.e. investor buys 100% of a number of loans, but it also can be done partially i.e. an investor buys 30% of a number of loans.

In this partial case there are some considerations

  • The institution retains loan management and ownership of the remainder %

  • This partial sale can occur at any point of the loan lifecycle and the % can increase or decrease as investors might want to buy more or sell back their fractions

  • The system must keep track of the buying and selling, the % of ownership by investors and on the lender's own books

  • Loan Repayments should be split into the portion belonging to the bank and to the investor

  • Accounting wise the % still owned by the bank and of every transaction should be booked and represented fully, while the % owned by investors should be off books

  • Rodrigo Ocampo Uribe
  • Mar 19 2021
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