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| Additional information |
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| BancCap Advisors, LLC |
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Overview:
BancCap Advisors, LLC is a mortgage services company. Our mission is to provide capital markets access to companies that wish to enter or expand in the subprime mortgage industry, but who may lack the internal expertise, infrastructure, stand-alone scale, or financing to do so.
BancCap targets successful mid-sized subprime and Alt-A mortgage originators that have not yet independently securitized their loans, or have infrequently securitzed and are looking for incremental exit strategies in addition to whole loan sales. BancCap provides this alternative through its co-securitization program, entitled BICEP.
Through the BICEP process, participants' loans are securitized and economics are passed through to each participant based on the quality and performance of their own loans. BancCap administers the program, performing, amongst other functions, the following:
Sourcing, qualifying and enrolling program participants.
Engaging and coordinating with securitization underwriters.
Engaging and coordinating with the servicer for each securitization.
Establishing and maintaining warehouse lines and premium financing lines.
Establishing due diligence standards and monitoring due diligence activities.
Closing each securitization transation and allocating securitization credit support, expenses and proceeds.
Monitoring post-securitization activity and allocating residual cashflows.
Preparing and distributing securitization and post-securitization transaction reports.
Our participants include retail and wholesale mortgage orignators.
The BICEP program involves publicly issued securities off of either the BancCap registered shelf or a dealer shelf. |
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History:
BancCap Advisors LLC is a wholly owned subsidiary of Berkshire Advisors, LLC, a management consulting firm serving the mortgage industry. Berkshire Advisors LLC is a part of the Berkshire Group Limited Partnership (BGLP), which has been providing managment consulting services to the subprime mortgage industry since 1998.
Beginning in about 2001, BGLP received repeated requests from clients to assist them in accessing the capital markets. BGLP began developing the co-securitization concept at about that time.
BGLP examined numerous piggyback and synthetic securitization programs offered in the marketplace dating back as far as 1993, trying to determine what worked best with those programs, and what problems those programs faced. The company interviewed many former sponsors and participants in those types of programs as part of its research. BGLP structured its program to best service its clients, building on and enhancing best practices it observed, as well as introducing new concepts and structures to deliver what its clients needed most.
BGLP created the BancCap program and entity to begin co-securitization. In 2002 the BancCap shelf entity, BancCap Asset Securitization Issuance Corporation (BASIC) was formed. It filed for a $1.3 billion shelf, which became effective in early 2003.
In 2003 BGLP worked on its first co-securitization transaction, which was issued off of a dealer's shelf. That transaction was for about $285 million. For two years BGLP has tracked that transaction and made refinements to its program based on observations and experience.
In 2004, BGLP formed the BancCap Advisors, LLC entity to be the program administer for the co-securitization program. In 2005, BancCap put in place a $250 million warehouse facility and $10 million premium financing facility to assist its clients in aggregating product for securitization. BancCap will more than double this capacity by year-end 2005.
Recently, BancCap has established strategic relationships to enhance the program, shortening securitization lead times and further lowering transaction costs for its participants |
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