CHALLENGE: An investment bank has a large portfolio of loans on its balance sheet. With delinquencies rising and loss severities regularly exceeding 50%, how can the portfolio manager mitigate its losses?

SOLUTION: Put back loans to viable counter parties by identifying representation and warranty breaches. Digital Risk designed, implemented and delivers a comprehensive loss recovery solution. First, Digital Risk systemically screens delinquent loans utilizing three proprietary Analytical Tools Portfolio Review, Loss Predictor and Inherent Risk Score identifying loans statistically most likely to contain material representation and warranty breaches. Then, Digital Risk performs Forensic Loan Reviews on select loans, preparing a electronic repurchase claims and supporting documentation for submission to counterparty. Next, Digital Risk administers the repurchase claims process including timeline tracking, advocating the client’s position with counterparties and ensuring repurchases are executed at correct amounts. All the while, Digital Risk’s web based reporting and regular status calls provides the client with complete transparency into the process.

RESULT: Investment bank recovered 41.2% of previously reserved losses and generated an enviable ROI of 32.0x.

SOLUTION: Loss Management

ANALYTICAL TOOLS: Portfolio Review, Severity, IE

EXPERT SERVICES: Forensic Analysis, Collateral Advisory Services, Regulatory Compliance Review, Fraud Detection and Prevention