Reference Application: Mortgage Repackaging

Introduction

A mortgage-backed security (MBS) is a collection (pool) of mortgages that are securitized or packaged as a security. As an MBS ages, the underlying mortgages get paid down or are removed from the pool because of, for example, default or refinancing. Rolling multiple MBS pools into one larger one can substantially reduce risk, as the default of a single loan will have a smaller effect on the whole.

This demo executes the process of “repackaging” an MBS to reduce risk by consolidating several pools of loans into a single security.

Note: This demo is designed to show successful processing of a claim without exceptions or error conditions. A full production implementation would include additional features, handle errors and exceptions, and incorporate appropriate security controls.

Getting Started

Installing

Disclaimer: This reference application is intended to demonstrate the capabilities of the DAML. You are recommended to consider other non-functional aspects, like security, resiliency, recoverability, etc prior to production use.

Prerequisites

Be sure you have the following installed:

• DAML SDK

Build

Type:

daml build

Note: If you change the DAML models locally, you need to re-run this command before starting the application.

Starting the App

Note: Make sure you have built the application (see: Build).

1. Start the DAML Sandbox and Navigator. Type:

   daml start --sandbox-option --address=localhost

   The navigator will automatically open in new browser tab at http://localhost:7500.

Stopping the App

1. Stop the Sandbox and the Navigator by pressing Ctrl+C in the DAML assistant.

Resetting the Prototype

Reset the application by following these steps:

1. Stop the app by following the steps in Stopping the App section.
2. Start the app by following the steps in Starting the App section.

User Guide

This application has a full browser-based user interface. Refer to the included .pdf file for instructions on how to use that interface to run the application.

Digital Asset Mortgage Backed Securities - User Guide

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