ProMerit for Warehouse Providers

Overview

Warehouse Providers provide bridge funding facilities to asset originators for the financing or temporary purchase of assets until they are sold through purchase/sale commitments to investors in secondary market transactions. Credit/Purchase Facilities secured by financial assets are characterized by client-specific business rules for collateral eligibility, limits management, and pricing. Warehouse Providers fund assets, hold and review notes, ship notes, provide instructions to all participants in a transaction, and handle disposition of proceeds upon sale of the asset. Corporate policies and facility agreements affect operating controls for monitoring and reporting collateral positions, and managing transaction and overall counterparty risk. Warehouse Providers must demonstrate superior control of information in order to comply with strict risk management requirements while meeting multiple intra-day funding deadlines and other service level obligations. Successful Warehouse Providers will have a core information system capable of handling a wide range of use case scenarios within a control framework for meeting internal and regulatory compliance requirements.


Solutions

Warehouse Providers use the ProMerit System-Of-Record platform, consisting of fundamental designs and components to help them operate and control their business:

  • Flexible Facility Definitions
  • Collateral Valuation Rules
  • Collateral Facility Assignment Rules
  • Collateral Covenant Compliance Rules
  • Collateral Stratification Tools
  • Collateral Shipment and Location Tracking
  • Mark to Market Support
  • Borrowing Base Optimization
  • Funding Request, Authorization, Execution Controls
  • Authorized Bank Account Controls
  • Limits and Sub Limit Controls
  • Variable Pricing rules
  • Configurable edit checks
  • Authorized Bank Account Controls
  • Authorized Closing Agent Controls
  • Authorized Investor Controls
  • Interest Accrual / Repurchase Accounting Policy
  • Fee Accounting
  • Participation and Syndication Accounting
  • Transaction Journals
  • Rules Execution Audit Logs
  • Billing

 

Using these business support capabilities, delivered through our .NET solution architecture that we use for all of our systems, we help Warehouse Providers successfully implement and maintain effective collateral, funding, and accounting controls that help them effectively handle a wide number of use case scenarios.


Use Case Scenarios

    Sample Funding Scenarios

  • Direct Debit Funding
  • Automated Funding Request Submission
  • Wire System Integration
  • Fedwire Confirmation
  • Settlement and Operating Account Structures
  • Syndication Settlement
  • Wire Presets
  • Bulkup Wires
    Sample Accounting Scenarios

  • Variable Pricing and Interest Accruals
  • General Leger Integration
  • Backdating transactions
  • Reverse /Re Apply transactions
  • Utilization / Non Utilization Fees
  • Syndication Trial Balance
  • Automatic Pricing Adjustments
  • Multiple-Entity Facilities
  • Scheduled Periodic Limit Adjustments
  • Margin Call
    Sample Facility Scenarios

  • Borrowing Base Computations
  • Business/Calendar Day Aged Asset Tracking
  • Aged Status Tracking (wet, warehoused, shipped)
  • Collateral Stratification and Eligibility Testing
  • Approved Investor Tracking
  • Approved Closing Agent Tracking
  • Sub Portfolio and Sub Account Hierarchies
  • Recursive Limits Testing
  • Temporary / Scheduled Limits Changes
  • Committed v. Uncommitted Facilities tracking
    Sample Processing Scenarios

  • Closing Agent Approval
  • 3rd Party Custodian
  • 3rd Party Disbursement Agent
  • End of Day GL Integration
  • Electronic File Upload
  • Funding Request/Authorization/Release
  • Bailee Letters with Shipping Manifest
  • Investor Wires in Process
  • Purchase Advice Allocation
  • Mark to Market
  • Collateral Review
  • MERS integration
  • Reversals and Back dated entries

About Us

We are a U.S. owned and U.S. based software development and professional services firm. We provide all of our services on-shore from our main office location in Amherst NY.

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