TAO Solutions is pleased to announce that its recent update of SecureHub to version 2020R2 brings forward major new capabilities to the software platform that will help users adapt to capital markets changes, more easily automate warehouse lending/borrowing activities, and improves asset-class coverage for global adoption.

What’s New?

Risk Free Rates

To support our clients in the adoption of new Risk Free Rates (“RFR”) regimes globally, SecureHub now features native support for RFR interest calculation across various components of the system, including floating rate notes and liabilities used in ABCP or term/revolving ABS structures.  While still supporting traditional LIBOR (and equivalents) methodologies, the new RFR module will allow for the definition and calculation of virtually any interest convention, including, but not limited to, SOFR, SONIA, ESTR, CORRA, SORA, and AONIA. Users of SecureHub now have the ability to define any RFR definition via configurable parameters to control:

  • Daily rates vs 30-day, 90-day or 180-days averages
  • Calculation methodologies for simple interest, compound interest, lockout periods, lookbacks, backward shifts, last recent (previous rate observation period), and last reset (last reset period average rate)
  • Import constituent rate data via files and/or APIs from external third-party (NYFR, Bloomberg, etc.), or internal proprietary, market data sources to populate underlying rate tables targeted for each RFR methodology defined in the system

This blend of functionality enables SecureHub users to create a diverse and bespoke set of RFR definitions to target interest calculations discretely to transactions as uniquely or broadly required.  With this native capability, clients will possess the greatest amount of flexibility as the global structured finance industry begins the massive transition from LIBOR based interest calculation methodologies over the course of 2021 and beyond.

Warehouse Module

While warehouse lending and borrowing was always possible in SecureHub using existing capabilities, a new module has been developed to provide more specific and robust functionality that better addresses the unique needs of users utilizing this form of financing.  This new module is designed to work for both warehouse lenders and borrowers and includes advanced features to enable:

  • Optimal selection of assets based on specific and configurable eligibility criteria and concentration limits
  • Comprehensive asset sale process that associates/lodges collateral with the pool(s) structure within specifically defined warehouse deals
  • Fully configurable borrowing base calculator to rapidly ascertain the availability of funding/lending amounts using SecureHub’s advanced formula builder
  • Bespoke fee matrices that allow the definition and calculation of used/unused fee amounts to be included in the invoicing process
  • Custom definitions for invoice period, cost-of-funds period, fee period, etc. for each warehouse program
  • Simple entry and maintenance of borrow/paydown transactions
  • Generation and preview of custom, branded invoices for borrowers with ability to email directly from within the application
  • Full accounting entries, including accruals of fees and interest finance charges

This new module will allow lenders to optimally manage and administer warehouse programs end-to-end with complete automation ensuring the reduction or elimination of operational risk and errors.  At the same time, for borrowers using SecureHub, the application will now enable local, native processing and monitoring of all warehouse programs across multiple lender relationships to better facilitate asset allocation/sales, borrowing base computation, and full accounting all in real-time without relying on error-prone and laborious spreadsheet solutions.

Mortgage Asset Class

While TAO Solutions’ MortgageHub application is an incredibly robust, asset-class specific platform for mortgages, it was mainly designed for and caters to the North American mortgage finance industry which is primarily supported by government sponsored entity programs.  This meant that clients requiring robust digital structured finance capabilities across multiple asset classes that included mortgages required the implementation of both SecureHub and MortgageHub to achieve their automation goals.  The 2020R2 release of SecureHub eliminates that requirement with full native support for the mortgage asset class and its contributing transactions and related data points.  This will enable SecureHub users to run credit card, equipment finance, ABCP conduit, etc. and RMBS structured finance programs within one unified application and data-set to vastly simplify their support and implementation activities, while concomitantly reducing infrastructure or cloud costs.  Additional enhancements building upon this capability include the implementation of MortgageHub’s industry leading global covered bond feature set into SecureHub over the course of 2021.  Stay tuned for more details coming soon.

Contact Us Today for More Information and a Demonstration

Whether you are a current TAO Solutions client or you are interested in hearing how SecureHub can transform your structured finance operations and administration capabilities, we would love to hear from you!  Please contact us to discuss any of these new features or if you wish to schedule a demonstration to learn more about the product.