Appendix 4 — Independent Specialists — Reliance on FHCs and DBDs as Gatekeepers to Capital Markets

Appendix 4. Independent specialists — captive/standalone finance companies (origination), LPFCs (ABS intermediation) and LGIPs / non-bank MMMFs (funding) — run an originate-to-fund process that depends on FHCs and DBDs as gatekeepers. Red path: finance cos. warehouse at an FHC multi-seller conduit, a broker-dealer structures the ABS and distributes it to LPFCs/SIVs. Green path: LPFCs have broker-dealers underwrite their CP and distribute it to affiliated MMMFs and LGIPs.