When will the eleven million good credit homeowners with negative equity begin to default?
Principal writedowns and interest income reductions have been illustrated as the “necessary solutions” to the nation’s growing mortgage crisis. The institution of principal write downs and interest income reductions coupled with the inevitable influx of strategic defaults is the single greatest threat to financial institutions. Nevertheless, the nation’s banks have a viable solution.
Carpe Aquam Capital LLC offers a solution that substantially reduces the risk of loss to banks. The BurkeyLoan® solution mitigates the risk of default, increases liquidity, generates political and consumer goodwill, and offers a transparent and revenue neutral alternative to principal write downs.
The BurkeyLoan® platform is a ”access to capital” based method and process of separating the risk characteristics of a loan into transparent and distinguishable components. It differs from pooling, the current process of mortgage securitization, through which risk is aggregated.
BurkeyLoan® is a solution …
· Revenue Neutral – Not A Zero Sum Trade-off
· Alternative to Principal Writedowns and Reduced Bank Interest Income
· Enhances Transparency, Mitigates Risk, Enhances Liquidity and Interest Income
· Allows Banks to Maintain Servicing Rights and Brand Identification with Customers
BurkeyLoan® Platform
The process requires banks and institutional partners to modify existing mortgage loans such that the subsequent loan conforms to a BurkeyLoan® structure and thereby are eligibile to be acquired by Company managed investment trusts. The Company does not directly originate loans from consumers or non-risk intermediaries. The BurkeyLoan® is only available to state and federal governments, banks chartered by them and select financial institutions.
Investors
The BurkeyLoan® solution is an “access to capital” based method and process of separating the risk characteristics of a loan into transparent and distinguishable components. It differs from pooling, the current process of mortgage securitization, through which risk is aggregated. The BurkeyLoan® solution mitigates the risk of default, increases liquidity and generates political and consumer goodwill.
