| 摘要 |
A mortgage lender/broker obtains a deposit from a customer in proportion to the size of the customer's mortgage and delivers this deposit to a rate guarantor. The customer's deposit plus a bonus is returned if an agreed upon refinance rate in an agreed upon period of time cannot be obtained, or the customer's refinance rate is locked-in for him and the lender keeps the customer's deposit. Call spreads are sold in a financial instrument to a sell off the optionality obtained by the rate guarantor and hedged such that profits will be level based on all possible market outcomes. When the price of the instrument stays the dame or decreases and the call spreads are not exercised, the rate guarantor collects the premiums form these call spreads are not exercised, the rate guarantor collects the premiums from these call spreads sold and returns to the customer his deposit in addition a bonus payout. When the price of the instruments increases, the call spreads are exercised against the rate guarantor and the rate guarantor keeps the customer's deposit to cover losses from the call spreads. The increase in the price of the instruments results in lowering of the mortgage rates and the lender/broker is able to lock-in the customer's agreed upon refinance rate. |
