Mortgage funding: Europe set for whole loan revolution

Whole loan sales will offer a growing funding alternative for mortgage lenders

Standard & Poor’s predicts a sharp increase in the use of whole loan sale technology in Europe, offering mortgage originators a meaningful financing alternative to retail deposits or the costs of small-scale securitizations.

Whole loan sales drive the US residential mortgage-backed securitization origination process and Europe’s fast-maturing mortgage sector has reached a level of sophistication and liquidity where the same technology can be deployed.

In the US, whole loan pool sales of $1 billion are a regular event, and can rise as high as $3 billion.

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