CHALLENGE: Conduits delivering loans to government sponsored enterprises take repurchase liability on loans sold. These liabilities must be mitigated aggressively by the conduit’s correspondent as it is in the best position to mitigate risk. How can a conduit partner with correspondents to mitigate their collective risk?

SOLUTION: After careful consultation with the Conduit and its client correspondents, Digital Risk designed, implemented and delivers a risk management portal allowing the conduit and the correspondent to exchange risk mitigation data, information and tools. The risk mitigation portal features single click and single login access to Digital Risk as well as third party risk mitigation tools. Additionally, correspondents can view and address the conduit’s quality control results directly from the risk management portal. The conduit utilizes data from the conduit to target quality control resources and enhance correspondent relationships.

RESULTS: Correspondents embraced the partnership understanding the mutual benefit. Early results indicate reductions in both early payment defaults and repurchase requests from government sponsored enterprises.

SOLUTION: Quality Management

ANALYTICAL TOOLS: Risk IQ, Plates

EXPERT SERVICES: Fraud Detection and Prevention, Credit Re-underwriting, Collateral Advisory Services, Operational Risk Reviews