Instructor: Jerry O'Connell, CEO, Jeremiah Associates LLC
Hours: 9:00 am - 4:30 pm; Registration/Breakfast begins at 8:30 am

This one-day seminar provides an introduction to Mortgage Backed Securities. The primary focus of the program will be to give new employees an understanding of the origination, securitization process, secondary markets and post trade processing. Topics will include industry terms, MBS features and characteristics, as well as an overview industry post trade processing. This class is geared for members of the financial services industry new to the MBS product and marketplace.

v    Significant Events

v   Participants

       ·         Investors

       ·         Originators: Banks, Lenders

       ·         Issuers: Agencies, Banks, Lenders

       ·         Guarantor

       ·         Dealers

       ·         Servicers Organizations

v   Basic Mortgage Facts

       ·            Lien

       ·            Amortization schedule

       ·            Residential

       ·            Commercial

       ·            Characteristics of mortgages

       ·            Types of mortgages

       ·            Mortgage cash flows

v   Government Sponsored Enterprise (GSE) Guarantees

       ·         Government National Mortgage Association

       ·         Federal Home Loan Mortgage Corporation

       ·         Federal National Mortgage Association

v    Basic Types of Mortgage Backed Securities

       ·   Conforming

       o    Purpose

       o    Maturity

       o    Interest Rate

       o    Mortgage Amount

       ·   Non-Conforming

       o    Purpose

       o    Mortgage Amount

       o    Other Characteristics

v    Securitization Process Model

• Origination

• Securitization

• Secondary Market

• Investors

• Servicers

• Mortgage Rates versus MBS Coupon

• Cash Flows

v    Mortgage Backed Securities Pool Characteristics:

• Types of mortgage pass-through securities

• Characteristics of pass-through securities

• Demographics

• Seasonal patterns

• Home sales

• Availability of money

• WAC - WAM - WALA

• Prepayments – PSA benchmark

v    The MBS Marketplace

• Over The Counter

• Trade Types

       o    To Be Announced

       o    Specified

• Transaction Size

• Variance

• Settlement Periods

v    Lifecycle of a MBS Trade

• Execution

• Risk Management Process

       o    Margining

       o    Collateral

• Trading and Allocation System Updates

       o    48-hour Day Pool Notification

• Settlement Processing