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​An Opportunity for Lenders and Homeowners

Breaking Free of the Mortgage Lock-In Effect

With 65% of residential mortgages locked in at rates of 4% or less, millions of homeowners are reluctant to move, creating significant challenges for banks and credit unions. These include compressed margins, reduced loan origination, and untapped equity. Takara transforms the ‘Lock-In Effect’ into a strategic opportunity—unlocking unprecedented benefits for lenders and borrowers.

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Low-rate mortgage portfolios are here 
to stay. What can you do about it?

The Lock-in Effect​

Why are we here?

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65% of residential mortgages carry rates
of 4% or less – Borrowers with “Golden Handcuffs” reluctant to move.​

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Portfolio lenders hold huge amounts 
of stagnant, low-yield loans with compressed margins and low turnover.​

“What if?”

​Imagine offering your borrowers 15% discount on their outstanding principal when they move.

Moreover,
The transaction will generate new revenue and drive origination of new loans.

Sounds like a DREAM?​

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Introducing DREAM

Defeasance for Real Estate Affordability and Mobility

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Replace
Borrower

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Upgrade
Collateral

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Loan - Minor modification

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DREAM

Defeasance for Real Estate Affordability and Mobility
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Offer - DREAM quote

Lender offers borrowers discount 
if they move and repay early – DREAM quote provided by Takara​.

Transaction - Replace borrower & collateral

Borrower sells property and repays with a discount.
Takara’s Successor Borrower assumes debt in full and purchases GSE MBS pre-approved by lender. MBS placed in Trust​ - lender has security interest in Trust’s assets.

Servicing via Trust

Trust’s assets secure loan payments to maturity, executed by FDIC bank as Trustee.

Example

Loan: $500K UPB, 3% FRM, $2,100 payment

DREAM quote - $425K

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Borrower pays $425K from sale proceeds - A $75K increase in home equity. Takara assumes loan in full and purchases $410K GSE MBS with face value of $500K, generating $2,100/m to maturity.

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Trust aggregates loan payments to maturity secured by MBS as upgraded collateral.

DREAM Benefits

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Customer Experience

First of its kind borrower benefit - 15% discount when moving. Increasing loyalty & strengthening relationships

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Induce Origination

Lender in the best possible position to originate a new Purchase loan - Revenue & Retention

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Increased Revenue

DREAM transaction generates fee translating to yield increase​. Removing servicing costs

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De-Risk Balance Sheet

Neutralize credit risk & enhance risk-based capital

A HUGE borrower-lender win-win when everyone least expects it!

Disclaimer: The material on this site is intended solely for informational purposes.
Under no circumstance shall it be construed, by implication or otherwise, as legal, tax, or investment advice. 

All rights reserved to Takara Capital Inc., 2025.

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