​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.
Low-rate mortgage portfolios are here 
to stay. What can you do about it?
The Lock-in Effect​
Why are we here?
65% of residential mortgages carry rates
of 4% or less – Borrowers with “Golden Handcuffs” reluctant to move.​
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?​
Introducing DREAM
Defeasance for Real Estate Affordability and Mobility
Replace
Borrower
Upgrade
Collateral
Loan - Minor modification
DREAM
Defeasance for Real Estate Affordability and Mobility
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
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.
Trust aggregates loan payments to maturity secured by MBS as upgraded collateral.
DREAM Benefits
Customer Experience
First of its kind borrower benefit - 15% discount when moving. Increasing loyalty & strengthening relationships
Induce Origination
Lender in the best possible position to originate a new Purchase loan - Revenue & Retention
Increased Revenue
DREAM transaction generates fee translating to yield increase​. Removing servicing costs
De-Risk Balance Sheet
Neutralize credit risk & enhance risk-based capital