Federal home Loan Mortgage CorpBundesheim Loan Hypothekenbank
Most of the Group's single-family guarantees are for the sale, securitisation and guaranty of single-family exposures and the exposure of singlefamily exposures to changes in fair value.
Apartment buildings comprises the acquisition, securitisation and guaranty of multi-family debt and paper; its investment in such debt and paper; and the managing of multi-family mortgage loan risks and mortgage mark-up risks. Investment controls its mortgage-related investment portfolios (excluding multi-family investment, heavily overdue single-family exposures and the exposure to debtor single-family exposures), Treasury functions and interest rates risks.
The company packs the mortgage loan into mortgage-like bonds warranted by the company and sells on the world' financial market. It buys credits granted by creditors and bundles these credits into mortgage-like bonds for sale on the equity market. However, the Company's main mortgage securitisation and guaranty business consists of the issue of one-class (PC) non-voting equity security instruments, which are transitory instruments representing indivisible economic interests in trust companies holding credit pool assets.
The Company emits personal computers as part of guarantee swaps in which the Company's clients grant it credits in return for personal computers. In addition, it emits personal computers as part of deals in which it buys high-performance credits (securitisation pipeline) and securitises them for safekeeping in its mortgage-related investment portfolios or for selling to third Parties.
Re-securitisation securitisation of the Company's debt instruments represents a favourable participation in PC pooling and certain other mortgage receivables. Those instruments are created using personal computers or their previously reissued securitisation instruments as basic security. The Bank emits various kinds of re-securitisation instruments such as Giant PC's, Stripped Giant PC's, Royal Estate Mortgage Investment Guides (REMICs) and other securitisation instruments.
They provide a guaranty for mortgage claims retained by third persons in return for managerial and guaranty charges, without securitising these asset values. The Group' s exposure to counterparty risks is based on its ability to hold a proportion of its anticipated loan loss and a significant proportion of its loan loss in a challenging business climate in groups of previously purchased debt to third country investor.
As part of the borrower's note transactions with STACR (structured agent loan risk), the Company establishes a benchmark repository of exposures from the single-family register and a related securitisation framework with fictitious exposure to loan risks such as first loss, maturity and seniors. STACR will issue STACR bonds to third-party borrowers in connection with certain of the fictitious exposure to counterparty credit risks and maintain the residual exposure.
The Agency Crédit Insurances Structure (ACIS) policy purchase transactions purchase insurances (signed by a group of primary and reinsurance insurers) that offer cover for certain specified lending event occurring and assigned to the unissued fictitious exposure of a STACR bond transactions. As part of the total loan securitisation operation and the junior securitisation structure for junior liabilities, the Company will issue secured prior-ranking bonds and nonguaranteed junior bonds secured by single-family lending.
As part of the seller's indemnity arrangement, he concludes a loan purchase contract with a vendor under which the vendor assumes part of the loss on the relevant monofamily loan against a charge or a deduction from its warranty premium. With the low level of solvency in mortgage business, the Company buys a loan improvement from subsidiaries of mortgage underwriters.
In addition, it also uses other forms of loan enhancement, such as mortgage origination, to reduce its lending risks. Our clients in the single-family guarantee sector are financing institutes that grant and sells credits for new or current home owners and provide day-to-day support. Such undertakings shall comprise mortgage lenders, merchant lenders, collective lenders, cooperative lending associations, other non-custodian intermediaries and saving societies.
Multi-family business provides cash for the multi-family residential construction sector and helps provide labour in the residential construction sector by buying and securitising credits backed by real estate with five or more entities. The Company invests in various kinds of securitisation, guaranty and loan loss mitigation instruments in the multi-family home business. The most important securitisation and loan loss mitigation instruments are K certificates and SB certificates.
It buys multi-family credits for aggregate and securitisation purposes through the issue of multi-family K-certificates, whereby it can pass on the anticipated and burdensome loan loss of the credits to third-party borrowers. In addition, it buys small multi-family credits for aggregate and securitisation purposes by issuing multi-family self-service certificates.
Other securitisation instruments are also issued, among them PC's, non-subordinated K-certificates, Q-certificates and M-certificates. This company guaranties mortgage-related asset values retained by third party counterparties for warranty fees without securitising these asset values. Structured credits risks (SCR) borrower's note belong to the other borrower's note instruments. Investment activity includes mortgage lending, mortgage-related transferable instruments of the rating agencies, non-agency mortgage-related transferable instruments, loan index swaptions as well as commercially mortgage-backed bonds (CMBS).
Our Das Investment division Investissements a pour objectif de fournir à ses clients des titres liés à des prêts hypothécaires, des titres non liés à des prêts hypothécaires, des prêts unifamiliaux non titrisés et d'autres portefeuilles d'Anlagen et de Cash-Portfolios. Our mortgage-related security activity includes buying and selling, US Dollar rolling and restructuring work. Unsecured single-family exposures are divided into more than three main classes, among them exposures purchased under the Securitisation Loan Purchasing Programme and waiting for securitisation; repurchase exposures and the implementation of amended exposures; and overdue exposures that it has cleared from computer pool.
The other investment and liquidity portfolios consist of the operating liquidity and emergency portfolios, liquid funds and other capital assets owned by fully-consolidated trusts, securities secured by derivatives and other parties, assets invested in uncollateralised agencies' debts and advance payments to creditors. Our Company's corporate treasurer functions manage the Company's financing needs, primarily through the issue of unfunded other liabilities, primarily in the Investment Segments.
Refinancing and cash flow are managed using various product categories, such as repo sales, discounted and benchmark changes, medium-term and benchmark bonds. As part of secured short-term loans, the Company is selling marketable equity instruments to a third party with an arrangement to buy them back at a later date.
The Company issued a number of floating interest and fixed income medium-term note instruments, which include puttable and non-callable and zero bonds with different maturity dates. Benchmark bonds are non-puttable fixed-income bonds which they issue with an initial maturity of more than or equaling two years. Uncollateralised other bonds and debentures and structured mortgage-related instruments are first bought by traders and distributed to their clients.
Clients of these instruments are state and municipal government, insurers, asset management firms, corporate clients, custodians and repos. They compete the Federal National Mortgage Association, Government National Mortgage Association, Federal Farm Credit Bank, Federal Housing Administration, dem United States Department of Veterans Affairs und Federal Home Loan Bank, Das Unternehmen konkurriert mit der Federal National Mortgage Association.