Institutional investors such as financial institutions and non-financial institutions or public and private companies with funds that can be assigned to long-term investments. Individual investors can also invest in ECHMB corporate bonds.
The main business activity of ECHMB is to purchase residential mortgages from primary lenders such as commercial banks, credit unions, mortgage finance companies, building and loan societies, development banks and insurance companies.
ECHMB issues corporate bonds on the capital market. ECHMB uses the proceeds from its bonds to purchase mortgages on the secondary mortgage market.
ECHMB is a secondary mortgage institution that provides liquidity to financial institutions including commercial banks, credit unions, mortgage finance companies, building and loans societies, and insurance companies. ECHMB does not provide funding directly to individuals. However, individuals may benefit from funding provided by ECHMB to the institutions referred to above.
In addition, ECHMB is different to a commercial bank that takes deposits/savings from individuals and originate mortgages to individuals. The main objective of ECHMB is raise funds on the capital market and use the proceeds to purchase mortgages from primary lenders or mortgage originators in the primary mortgage market.
ECHMB does not provide retail-banking services. It's main purpose is to buy and sell mortgages in the secondary mortgage market.