Advanced ABS Automation

Funding & Portfolio Management

Automated solutions for the global structured finance industry

September 17, 2014 - 

TAO Solutions is pleased to announce the releases of updated versions of mortgageHUB and PoolMaker/Pool Manager to support changes to the CMHC NHA MBS program mandated for implementation on November 1st, 2014.

Clients will be provided with documentation which provides step-by-step instructions for implementing the features described below.

NHA MBS indemnity calculation

mortgageHUB now features an internal pool cash flow engine designed to support the CMHC standard indemnity calculation methodology. mortgageHUB automatically calculates indemnity prices as set out by CMHC as part of the monthly remittance process. Clients are still responsible for providing the correct GOC yield curve through the existing yield curve upload method. The pool cash flow engine validates that the curve has the correct effective date. This enhancement lets you execute the remittance process and indemnity calculations in a single automated step.

Users preferring to continue to use external pricing tools for pools issued prior to November 1, 2014, will still be able to bulk upload prices for indemnity calculation purposes, resulting in the suppression of the mortgageHUB internal pricing mechanism on such pools.

Pool Manager users have no changes to their current process for entering pool prices.

Loan eligibility requirements for 965 pools

mortgageHUB has an updated compliance template for the latest loan eligibility requirements for 965 pools.

CMHC 2834 Information Circular updates

mortgageHUB includes an updated version of the 2834 Information Circular form, as well as updates to the software to support standardized layouts, descriptions, and disclosures. The Pool Types, Product Types, and Pool Construction screens in mortgageHUB areas have been updated in relation to the 2834 form changes.

Users can add disclosures that are relevant to all pools of a given type, or disclosures that are relevant only to a particular pool. For 970 and 975 pool types, users can indicate whether indemnity payments are to be paid to investors in the event of prepayments resulting from a bona fide sale. Finally, the application allows for the addition of prepayment provisions text (Indemnity Exempt Prepayment Provisions and Indemnity Applicable Prepayment Provisions).

PoolMaker users will receive Microsoft Word templates for each specific pool type. Each 2834 template must be assigned to the pool type in PoolMaker and the prepayment provisions and disclosures are entered manually on the document per current process.

Please contact your designated TAO Solutions account manager if you have any questions related to these changes.


Why TAO Solutions

Leader

TAO Solutions is the leading Canadian vendor of dynamic structured finance software solutions (mortgageHUB® and secureHUB®) designed to assist banks and financial institutions with the intractable challenges of interfacing asset portfolios to capital markets funding.

Expertise & Innovation

Driven by a dedicated senior management team experienced in the capital markets, technology and securitization industries, TAO Solutions is at the cutting-edge of developments within structured finance, asset funding and information technology.

Strength

Member of Tao Group of Companies providing comprehensive capabilities and services covering the structured finance industry. TAO Solutions technologies are proven in production servicing more than $200 billion in assets.

What we offer

TAO Solutions draws upon its deep and extensive experience in capital markets and financial services technology to help your organization achieve its strategic goals and obtain a competitive advantage by offering:

  • Superior Technology and Functionality – solutions are newly architected, built upon the latest standards and use the best industry methodologies for implementation.
  • Operational Efficiencies - unique products that add operational efficiencies and rigor to complex and burdensome processing requirements.
  • Agility by Design - solutions that have been purposefully designed to remain agile through their common flexible and adaptive framework.
  • Professional Services - project management and implementation expertise to facilitate successful projects.
  • Committed Partner - proactive delivery and support model that keeps ahead of industry developments.

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