Rebirth 79: I opened a bank in the United States

Chapter 453 The price at which the loan can be sold

"It's not difficult to sell. I remember that the annualized interest rate of your loans is generally 12%, and the cycle is very similar. This is more convenient to pack, and it is easy for them to operate after they get it. In theory, it is not difficult to sell, but it is relatively Hard to sell price."

"How do you say this? Suppose I now have a 18-year housing mortgage with a total amount of 143470 million, which has generally been repaid for half a year, and then this year is almost up, that is, a total of [-] installments have been repaid. Assuming that the monthly principal and interest are equal Standard, if paid annually, the monthly principal and interest receivable is $[-], assuming I want to package it up and sell it early next year."

Carter called the waiter, asked for paper and pen, and calculated on the spot.

"The principal and interest I have received from this loan total more than 258 million. There should be a balance of the principal of this loan"

"The interest repayable in the first month is 10, the principal is repaid 43470, and the loan amount at the end of the month is 9956530; the interest repayable in the second month is 99565.3, the principal is repaid 43904.7, and the loan amount at the end of the month is 9912625.3; the third months."

"The interest payable in the 17th month is 92498, the principal is 50972, and the balance at the end of the month is 9198828.8; the interest payable in the 18th month is 91988.3, ​​the principal is 51481.7, and the balance at the end of the month is 9147347.1 There are still about 120 million outstanding loans in this loan pool 18 installments in ten years, minus 102 installments that have been repaid, there are 143470 installments left. Each installment repays 1463 US dollars, that is to say, in the remaining eight and a half years, if there is no bad debt and other losses on this loan, the theoretical It can be turned into [-] million in cash! How much do you think the Federal Mortgage Association can pay for my loan?"

Throwing down the note, Carter let out a sigh of relief.

In the era when there was no excel, the algorithm of calculating the equal amount of principal and interest by hand was really terrible.Fortunately, only 18 installments have been repaid, which is not much, so it is easier to calculate, if there are more installments.
"You signed these contracts to repay the principal and interest in equal installments?!"

Just when Carter was rubbing his sore wrist, Julian was not calm.

As mentioned earlier, 80 years ago, it was more popular in the United States to pay the principal and interest in one go.This method has both advantages and disadvantages. The advantage is that the interest income is more. For example, if the annualized interest rate is 12%, after ten years, it will be 120% interest income, plus the principal.But the disadvantages are naturally obvious, the cycle is too long and the liquidity is too poor!The risk of bad debts is also high!
Therefore, this repayment method is withdrawing from the mainstream market, at least in medium and long-term loans, it is no longer common.But even so, the annual repayment model of equal principal is more popular now.

That is, a loan of 1000 US dollars, repayable in ten years.In the first year, the principal payable is 1200 US dollars, the interest is 2200 yuan, and the total amount is 1000; in the second year, the principal is 1080 yuan, the interest is 2080 yuan, and the total amount is 66 yuan; in the third year, it is analogous, and in the last ten years, the loan institution can recover the money money, a total of [-] US dollars.This is equivalent to a total profit of [-]% on the book duration of this [-]-year loan.

As a result, what is Carter doing here? !
Equivalent principal and interest, but also on a monthly basis, paid annually.
At the same interest rate, if 72 is released, the accumulated accounts receivable after ten years will be [-] US dollars.The total profit margin is [-]%
A 6% difference in profit margin may seem like nothing, but if the number is enlarged or the period is lengthened: 6% of 60 million US dollars, that is [-]!

"Yes, they are all in equal installments. The repayment is on December 12 every year. Of course, the last installment is calculated according to the time of the loan. This is different for everyone, but generally speaking, the repayment date is closer. Basically, within one month of 10 years, it can be fully paid off.”

Carter nodded, and replied very confidently:
"At the beginning, it would be less stressful for them to sign. If it is an equal principal and a loan of 10, it will need to repay [-] in the first year. If it is an equal amount of principal and interest, it will only be [-]."

"To be honest, I don't think I would sell this [-] million loan. This loan is a special loan for those HT franchisees. Judging from the current profit of the store, the money is basically not repaid. possible."

"That's what I said, but if you really want to enter the open market, you still have to look at the value of its associated subject. When you signed this mortgage loan, what was the collateral? These people's shares in HT stores, or their original residences?"

This question from Julian instantly embarrassed Carter.
"Residential."

"Then it's over. The housing prices in your place are not high now, and it is difficult to see improvement in a short period of time. So the store shares of these people are actually useless. They can be used to promote and publicize, which is to show that these loan customers , have sufficient repayment capacity”

Julian rubbed his chin, and suddenly felt that Carter's loan was turned into an MBS, it seemed... It seemed that there was a lot of room for manipulation!

"You just said that the multiple loans with a principal of tens of millions were all loaned by the store owners of HT, right?"

"Yes! All of them!"

Carter nodded affirmatively
"Are there any restrictions on early repayment? Is it stated in the contract that early repayment is not allowed?"

"This is only three years, and now there is one and a half years left. Early settlement is not allowed within three years."

"Oh, forget it"

Julian was suddenly discouraged when he heard the words
"This is troublesome. HT stores make money, which guarantees their repayment ability, but now HT stores are too profitable, which makes the loan worthless. The possibility of early settlement increases, and the expectation of this loan In terms of income, it is not good news! If you have a clause that restricts early settlement, then your loan will definitely sell for a good price, what a pity! What a pity!"

"Then how much do you estimate the most you can sell now?"

Carter was taken aback when he heard this, feeling uncomfortable.
"It's estimated to be about [-] million at most. Your current loan principal is only about [-] million. The expected income is [-] million. This is [-] million. Fannie Mae needs to earn a little; securities underwriters need to earn A little bit; service providers still have to earn a little bit, and the rest has to be reserved for investors. Ten million yuan is not bad.”

Ten million? !

Carter rubbed his chin, plus the total of 258 million U.S. dollars that he has received and will receive in two weeks later, it is equivalent to this loan bringing him a total of more than 3 million profits, which is more than his own. The estimated [-]% income is even lower!

Although the risk can be passed on and realized quickly, the profit loss in the middle still makes Carter a little distressed.
"This loss is a bit big. Is there any way to increase some profits? For example, in these links in the middle, what kind of positioning do they undertake respectively? Is there anything I can do by myself? If this is the case, can I share a little less money? ?”

"How to say this, you need money urgently now, right?"

Julian hesitated for a moment before asking.

"Um, it can't be urgent, but it would be good if there is a quick turnover of money back!"

"The Federal National Mortgage Association is very difficult for you to get around. Except for them, there are very few institutions in related industries that can provide [-] million US dollars in cash at one time, and their role is also relatively difficult to replace. After all As the issuer, their credibility will be stronger, after all, they are also federal agencies.”

"The rest, securities underwriters, you definitely can't do this. You still have to pay commissions to investment banks, only service providers, you can consider this."

(End of this chapter)