Are Direct Mortgage Loans Right for Your Organization?

Direct mortgage loans are a popular-and-growing choice among many insurance companies. As with any investment, insurers hoping to responsibly add direct mortgage loans to their portfolios need to understand the challenges of managing data integration, risk assessment, and illiquidity for this complex asset class.

Direct mortgage loans are generally long-term, fixed-income securities with predictable cash-flows. This paper includes discussions of direct mortgage loans’ origination process, specific reporting considerations, and how they differ from other mortgage-backed securities. This resource will give investment and accounting teams a better understanding of direct mortgage loans’ complex accounting treatment.

Direct Mortgage Loans is part of Clearwater’s “Understanding Asset Classes” series. This series explores the growing popularity of complex asset classes, and best practices for CFOs, CIOs, and accounting professionals at U.S. insurance companies to manage complex assets’ accounting challenges.