What is XFB FinTech ?
- XFB is a Peer to Peer (P2P) Wealth Management platform that connects mortgage Investors to Borrowers. XFB FinTech specializes in asset selection and servicing the underbanked.
Who can become a XFB FinTech Investor?
- Professional Investors.
Sophisticated investors with sufficient investment experience and knowledge, as defined in section 1 of Part 1 of Schedule 1 of the Securities and Futures Ordinance (Cap 571) and generally includes:
- Any individual who (either alone or with his/her spouse or child on a joint account) has a portfolio of not less than HKD 8 million (or its equivalent in any foreign currency) (“Individual Professional Investor(s)”)
- Any trust corporation having been entrusted with total assets of not less than HKD 40 million (or its equivalent in any foreign currency);
- Any corporation or partnership having
(a) a portfolio of not less than HKD 8 million (or its equivalent in any foreign currency); or
(b) total assets of not less than HKD 40 million (or its equivalent in any foreign currency); and
- Any corporation the sole business of which is to hold investments and is wholly owned by any one or more of the Individual Professional Investors or such persons described in 2 or 3 above.
Who can be a XFB FinTech Borrower?
- Any corporate or personal customer who owns a property is eligible as a XFB FinTech Borrower.
What kind of loans are available?
- The loans are fixed rate, interest only loans with up to 80% loan-to-value (LTV) of the property value.
How long are the loans ?
- Loan terms range from 12 to 120 months.
What are the sizes of the loans?
- Loan amounts range from HKD 100,000 to 50,000,000.
When will loan interest payments be made?
- Loan interest will be paid from Borrowers to Investors on a monthly basis, depending on the loan contract.
What is Loan Tranching?
- Each loan is split into several Tranches by Loan-To-Value (LTV). For example, Tranche A at LTV 0%-30%, Tranche B at LTV 31%-50% and Tranche C at LTV 51%-80%.
How do the Tranches differ?
- The tranches are based on LTV ranges. The higher the LTV, the higher the return. The lower the LTV, the safer it is, due to higher priority in the event of default.
Why have the Tranches?
- Every Investor has the unique risk appetite and return expectation. XFB FinTech offers the Loan Tranching Model, which allows Investors to select a basket of mortgage loans forming an investment portfolio which fulfills his specific needs.
What is Minimum Investment Amount (MIA) and MIU (Minimal Investable Unit)?
- Each loan can be split by fixed Minimum Investment Amount(MIA), which is HKD 100,000. Thus, a loan of HKD 10,000,000 can be divided into 100 units, each unit can be invested by an Investor. Such unit is called Minimal Investable Unit (MIU).