"Service provider? What does this mean?"

Judging from the various participating institutions in the MBS issuance process, Federal National Mortgage Association is undoubtedly the issuer. It packages a batch of mortgage loans and sells them to the other party, and then the other party securitizes such an asset and packages it for sale.

It is somewhat similar to the secondary distributor in the ordinary commodity sales process. It is itself a factory. After the factory produces the product, it sells it to the distributor at a fixed price. After the distributor receives the goods, he processes them and then enters the market through channel dealers.

This channel provider is the securities firm and investment bank. They control the securities sales channels in the securities market. If you don't use it, you can't...

It stands to reason that after these two steps, your mortgage securities have entered the secondary market, so what is the purpose of having a service provider?!

"A service provider is relatively simple. It is an institution that is responsible for collecting accounts on time and issuing reports to investors. Investment banks and securities firms will not waste their energy on this kind of thing, and the positioning of a service provider is more suitable for you. Basically...

If it’s 9 million US dollars, you can get a service commission of about 1%, which is 90,000 US dollars.”

"Every year?"

"What are you thinking about? Total!"

Julian, who was drinking, was almost choked by Carter's "wishful thinking", so he couldn't help but give the latter a look:

"How big of a capital pool does the Communist Party have? You want to get 900,000 for doing such a small thing? Go ahead and grab the money! That's faster!"

"Ahem...Isn't this because you don't understand the market...Um, Federal National Mortgage Association, how much is their general commission?"

12.58 million plus 90,000, the total is only 12.67 million, which seems to be still some distance from the 30% of the expected income...

After smiling, Carter continued to focus his attention on the issuer.

"That's not the case for them. The commission on the surface is about 2%-3%, but in fact they have many sources of income. For example, based on a loan asset pool of US$9 million, they issue 3 million

Transfer securities cost 3 yuan each. But now only 2 million have been sold. This means that one-third of the total income in the first year was retained in the mortgage association. If it is not sold,

What could they do with the money before going?"

"Can I use it to continue investing? For example, other stocks, bonds, etc.?"

"It should be possible...the mortgage income rights belong to them. The part sold is equivalent to being transferred to the investors, but the unsold part belongs to them. They should have the right to control the money.

.”

After Carter thought for a moment, he nodded.

"Yes, if this is the case, their final income is hard to say. You can make money by selling mortgage-to-pay securities... You can also make money by directly investing the money. For some mortgage-to-pay securities with high-quality underlying assets,

What could they even do? Instead of selling it all at once, keep some of it, wait for the value of the security to rise, and then gradually sell the rest and make a profit."

"And there is also a liquidity problem... there should be more room for maneuver! They also need to pay off the proceeds from selling the certificates before the date... For example, in the second year, 1 million copies were not sold, so they received 580,000 US dollars.

After the mortgage loan was repaid, the one million pass-through securities were sold at the beginning of the third year, but since the repayment date has not yet arrived, the money is still in their hands and can be used for investment in other directions!"

Following Julian's words, Carter added. The more he added, the brighter his eyes became. There is so much room for maneuver here!

Seeing Carter's greed, Julian quickly reminded:

"That's true, but to be an issuer, channel resources are very demanding. You also have to bear the risk of not being able to sell them and the investment failing. Then how to sell these securities better and more expensively, this is

The issuer and the securities firms also need to work together to find a solution. They also need to hook up with the media to facilitate the publicity..."

"Anyway, this is the situation. You have to consider the specific pros and cons yourself. However, I believe in you! My child, you can make the right choice!"

After blinking perversely, Julian changed the topic:

"Okay, let's talk about other things in the remaining time! You have to know that today is the only time in this year and a half that I have missed the closing meeting before the market closed. You have to give me something to make me feel that my trip is worthwhile.

, it’s not in vain that I missed the company meeting information!”

"Information? I predict that New Haven is about to enter a period of major construction. Does this count?"

Carter frowned. He could tell that Julian seemed to be testing his own worth. Just thinking about this period of time...

"And what I mentioned to you before is to attract Japanese car companies to Georgia. Currently, Toyota and Nissan factories are already under construction. Related supporting parts companies in the surrounding areas, especially those that can be used with aviation parts,

There should be a good development. Because these two car companies,

This time we came to the final assembly plant. Core components such as engines and gearboxes are still produced in Japan. Correspondingly, the rest of the spare parts will not be produced by the Georgia factory. And these components are shipped from Japan for assembly.

It should be less cost-effective than purchasing it nearby in the United States!”

"Very good. I have arranged for people to investigate rubber products and plastic products companies in Georgia. Of course, there are also some other related industries. You just said that New Haven is going to be built in a big way. Can you give us more details?"

"Of course, that's what happened..."

From my own experience when I was in school, to the end when I saw the announcement from the New Haven City Government, I further speculated that New Haven's major construction will begin...

Julian has always been a good listener. Regardless of whether the content of Carter's words is nutritious or not, he always appears to be interested.

"So you want to open a commercial bank in Connecticut, and then take advantage of the demand brought about by the large-scale construction in New Haven, and then use the financial tool MBS to increase the speed of capital turnover and reap a wave of dividends here?"

"That's right! According to the cooperative plan between Yale and the New Haven City Government, the downtown area, that is, near Yale University, should have no less than 40,000 permanent residents, plus about 10,000 Yale students, with 3,000 to

A faculty group of four thousand people. The active population of the entire New Haven urban area should be no less than fifty-six thousand, or sixty thousand."

"But now it is obvious that the gap is huge! Yale has expanded its student enrollment in recent years, which can be regarded as treating the symptoms, but the root cause has not been treated. To be honest, too many students now have caused a serious decline in the quality of our teaching. Many professors' courses have not been selected.

None of them were chosen, and there are many professors and their relatives who simply don’t choose to live in New Haven.”

"According to the observation statistics of my classmates and me, including Yale teachers and students, the active population of the entire urban area of ​​New Haven should be only about 50,000, which may be one or two thousand less, or one or two thousand more. But this is

There are a large number of Yale students inside. After the expansion of enrollment is dispersed, this indicator will drop sharply to about 30,000. It is still 10,000 short of the New Haven government’s plan! It is still 30,000 short of the current active scale.

Ten thousand!"

"This 30,000 population increase, even if there are five people per household, means that there is a demand for 6,000 houses! Based on the current housing prices in New Haven's urban area, I believe that if it develops smoothly, it will rise within two years.

Within three years, the price of a house in the urban area should rise to about 100,000 US dollars. So just the residential market is a market of 600 million US dollars. If you add commercial buildings and government financial orders to modernize the old city

..."

"Construction, real estate, and its associated real estate finance. If I can rely on dog real estate and the high turnover provided by that commercial bank, and the situation is good, it shouldn't be difficult to get one-fifth of the orders. This is a

Billion dollars!”
Chapter completed!