Mortgages are generally not fully appreciated for the investments they are. However, any loan — or any interest-bearing transaction, for that matter, is an investment because money is put in with the expectation of receiving a return. This basic type of transaction forms one of the cornerstones of our financial system. It’s why interest rates are watched so closely in the markets. They’re essentially the price we put on loaning money.
The power of mortgage investing
With mortgages, however, the crucial component of the interest-bearing transaction is the underlying collateral property, which provides lenders with some assurance they otherwise wouldn’t have that they’ll at least recoup some if not all the money they’ve invested in case of default. Again, this basic financial transaction is another cornerstone of our financial system, and it’s one in which ASCEND MIC has a developed expertise.
At ASCEND MIC, we not only leverage the power of one or a few mortgage loans, we assemble an entire pool of interest-bearing mortgages — which comes with a number of advantages. First, pooling mortgages in this fashion means that we have demonstrated experience in mortgage lending, administration, securitization and investment. It’s just another part of the ASCEND MIC difference.
The benefits of securitizing pools of mortgages
Mortgage pooling also provides flexibility regarding the types of mortgages selected for a particular portfolio. This flexibility means that certain types of mortgages can be targeted, such as residential, commercial, land-based, etc. It also means that a portfolio can be protected through diversification. We don’t put all our eggs in one basket, so that our investors receive protection from inevitable market uncertainties.
Yet mortgage pooling is only one part of the securitization equation. Once we pool together a portfolio of mortgages, we then structure the returns received into a security, whether it’s bonds, shares, investment funds, etc. The benefits to this kind of investment structure are formidable. We handle all the complexities of investing in mortgages, pooling and administering them, while our investors receive predictable, stable and relatively high rates of return.
Want to find out more about a mortgage pool securitization solution that’s right for your needs? Contact us today.