The SRC products offers funding to lenders, who are banks and finance companies, to enable them to offer accessible home loans for homebuyers.
SRC seeks to create an effective secondary market, where home loans and servicing rights are bought from lenders (the mortgage originators) and sold to investors.
Short term Funding
Provision of bridging loans for finance companies during a warehousing period. This product provides immediate access to short-term (less than five years) low-cost funding to leverage balance sheet capacity and enable originators to offer more mortgages.
SRC to acquire residential mortgage portfolios from banks and mortgage finance companies. This will enable them to free up their balance sheet, improving their capital utilization.