COMPUTER IMPLEMENTED FOR TRANSFORMING BANK OWNED REAL PROPERTY AND/OR BANK HELD MORTGAGE NOTE RECEIVABLES INTO A HYBRID MORTGAGE/ASSET-BACKED SECURITY.

摘要

A method for transforming bank-owned real property assets and/or bank held mortgage note receivables, suitable for refinancing, into a negotiable hybrid mortgage/asset-backed security. The method includes providing a bank mortgage at a below-market mortgage rate for purchase of the real property or refinance by the mortgagor. The bank mortgage, having a face value, is assigned to a secondary market buyer at a market price greater than 30% of the mortgage face value. The face value minus the market price defining mortgage note equity. Using the current bond price% of the mortgage face value, a negotiable government security or non-governmental organization security is purchased by the secondary market buyer. The bank mortgage note and government security/non-governmental organization security are securitized into a single negotiable hybrid security suitable for selling or pledging to a central bank as collateral securing funds to recycle the process.