shimself
Member of DD Central
Posts: 2,561
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Post by shimself on Oct 13, 2015 14:05:36 GMT
The mortgage loans do not have a buyback guarantee. Mintos loan originator is considering each late paying loan case separately and might exercise the buyback rights, but investors should not rely on that. But with the average LTV of 33% across the portfolio the collateral should easily cover any outstanding liabilities in case of a loan default. The buyback guarantee for loans is indeed managed by the loan originators, not Mintos. The loan originators maintain the buyback guarantee based on the the spread between what the borrowers pay and what the investors receive. Are you certain that the originators are operating the buybacks correctly and promptly?
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Post by martins on Oct 15, 2015 5:51:49 GMT
Yes, among other things we are also checking how the loan originators are managing the cash buffer for the expected buybacks.
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