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Can someone please tell me if I am getting my mind around this company's primary/unique value proposition to it's clients and investors.

1. Their data base is superior and will lead to smaller default rates making the loans more profitable.

2. Because the loans are "safer" they are able to undersecuritize them lowering their clients cost of money and making them even more profitable.

3. FMD is so sure that the above two statements are correct that they only collect fees from securitization services if/when they have proven it. (Plus a little)

They in turn ask investors to accept the above business proposition will lead to sustainable recurring business and their models of how much they will make in the future,but count as profits now, will end up being accurate.

If all of this works out this is one cheap company. If not it's one big house of cards.

Have I got it?


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