Pan Asian Mortgage Co. Ltd. (“Pan Asian”) is a Hong Kong based innovative financial services company specializing in mortgage origination; mortgage-backed asset securitization and capital markets financing.
Providing Innovative Mortgage Solutions
Founded in 2002, Pan Asian specializes in originating residential mortgage loans and structuring the asset backed loans for securitization. Under the SuperFirst Mortgage Financing Programs, the company has been focusing on the Higher Loan-to-Value (HLTV) mortgage market segment using normally-priced mortgage products with first ranking security.
This innovative business model has provided Hong Kong homeowners with “one-stop shopping” mortgage financing options at an affordable rate, as well as providing high quality mortgage security for our financing banks. Ultimately, these mortgages will be value-added and transformed into fully collateralized (secured) instruments for investors who are interested in taking a stake of the low credit risk and with a Hong Kong property as collateral.
Our SuperFirst Program has processed and assessed over HK$20 billion (US$2.8 billion) worth of mortgages, approved around HK$14 billion (US$1.8 billion) worth of residential mortgages in Hong Kong through two unique co-financing programs – the 140% LTV Negative Equity SuperFirst Mortgage Refinancing Program and the 95% LTV SuperFirst Mortgage Financing Program. The former was securitized in 2004 with rated mortgage-backed securities by both Standard & Poor’s and Moody’s and fully redeemed in 2014.
Up to 2013, HK$3.15 billion (US$400 million) worth of 95% LTV mortgage loans have been fully repaid by our customers within last four years from the first draw down of the mortgage loans. The excellent repayment history of our customers is illustrative of our exemplary underwriting skills and credit assessment ability.
Raising Capital with Acumen & Expertise
With the mortgage portfolio that it has originated and underwritten, Pan Asian re-engineers the mortgage loans into investment instruments utilizing securitization technology and issues notes to be sold into the international capital markets. Pan Asian closed Hong Kong’s first and the world’s only negative equity Residential Mortgage Backed Securitization (“RMBS”) worth HK$1.25billion (US$160 million) in December 2004. This is a landmark case as the mortgage portfolio were made up of a pool of negative equity mortgages originated against the backdrop of a very fragile economy after the internet / dot-com collapse in 2001 and pre-SARS in 2003.
Since 2014, Pan Asian has further completed a series of Notes Issuance Programs which were distributed by private placements with professional investors to provide funding for its mortgage origination business. Notes issued under the first series have been fully repaid in March 2016 and further series were launched due to popular demand.
Once again, Pan Asian’s team has proven to the market its business acumen and technological expertise in successfully structuring and closing the RMBS and various series of the Notes Issuance Programs.
Pan Asian receives continuous funding from overseas banking institutions and has maintained an exceptional track record with its funding banks. Up to 2016, Pan Asian has repaid 86% of our borrowing in aggregate while experiencing zero losses in its mortgage portfolio – this is an impeccable record among our competitors in the mortgage lending business.