Central 1 successfully completed our first Insured Mortgage Purchase Program (IMPP) transaction on March 31, 2020 in the program’s first transaction.
Acting on behalf of a credit union as a third-party swap counterparty, Central 1 helped secure $176 million in funding to support our member’s liquidity management – demonstrating Central 1’s expertise and resolve to help credit unions access funding in the current economic environment. Central 1 has a full suite of funding and liquidity products to assist credit unions, and IMPP and securitization will help many credit unions during this period.
Supporting credit unions every step of the way
Blake Dumelie, Central 1 director of securitization and funding services, and board member of the Mortgage-Backed Securities Issuers Association, and his team efficiently set up the infrastructure within three days to ensure Central 1 was ready to help and simplify the process for our members. Working within the tight timeline of the first IMPP transaction and the successful settlement of the swap is a testament to the team’s commitment to provide credit unions with the levels of service our members and clients need and expect from Central 1.
Central 1 is well-positioned to support credit unions navigate the current economic environment and provide members access to liquidity sources. We are the only securitization partner in Canada that provides end-to-end securitization support in-house, from National Housing Act Mortgage-Backed Securities (NHS MBS) servicing to swap counterparty services.
Approximately 40 of our members, who are NHA MBS issuers, can access IMPP through Central 1. As credit unions employ various liquidity strategies, we anticipate supporting a volume of approximately $800 million through IMPP.
IMPP was launched by the Government of Canada as part of its COVID-19 Economic Response Plan to ensure the health of the financial system and economy. Under this program, the government will purchase up to $150 billion of insured mortgage–backed securities (MBS) through the Canada Mortgage and Housing Corporation. IMPP will provide stable funding to financial institutions and mortgage lenders to ensure continued lending to Canadians.
For more information about IMPP, NHA MBS or funding services, please reach out to us directly at Treasury@Central1.com.