Our Markets
As the recent sub-prime mortgage collapse has demonstrated, the number
and diversity of participants within the industry has increased
significantly. Each party tries to maximize profits while minimizing risks
of fraud and error that produce individual loan and portfolio
underperformance.
Digital Risk’s powerful combination of advanced predictive modeling and
risk analytic tools hands-on loan reviews, and forensic underwriting enable
our clients to make informed decisions, often under time-critical
conditions. Here’s how:
Investment Banks. The goal is to buy and sell whole loan pools
and/or securities at the “right price” as well as to manage existing MBS
portfolios performance. The challenges our clients face include a lack of
precise risk-based criteria, potential bias in selecting samples, lack of
industry-wide standards, inconsistencies in reviewer accuracy and expertise,
and limited information exchange between each review. Our solutions enable
efficient and cost-effective portfolio review to assess and mitigate risks.
We offer our extensive industry expertise to conduct due diligence, breach
reviews and repurchases requests, provide shelf defenses and serve as expert
witnesses at trials – everything it takes for our clients to achieve their
goals.
Hedge Fund and Private Equity Firms. To make appropriate asset
acquisition and disposition decisions, investors want yield expectations met
or exceeded, and have relatively accurate yield projections concerning
changing prepayments and default probabilities. We use our analytical tools
combined with expert re-underwriting and due diligence to help them to
properly value mortgage-baked securities, especially distressed assets.
Fixed Income Security Firms. To determine the “true” value of the
loan portfolios, our predictive modeling and analytical tools efficiently
flag under-performing loans while our forensic review services pinpoint the
discrepancies to determine sources of fraud and error that contribute to the
portfolio’s underperformance.
Servicing Organizations. To help them review loans proactively and
manage non-performing securities, we offer ongoing Asset Monitoring Services
and Forensic Review Services. Digital Risk solutions enable early
identification and resolution of non-performing loans based on accurate,
up-to-date assessment of borrower’s stability and asset valuation. Our
expert underwriting team can assist with loan modifications as well as
effective asset protection, including loan foreclosures, which increasingly
are taking place at this time.
Bond Guarantors / Insurers. To build and execute highly effective
repurchase claims for “put back” to the appropriate entity under a justified
breach of representations and warrants, our team performs thorough Mortgage
Pool analyses and Forensic File Review.
Rating Agencies. To update ratings, based on more accurate
information, our team performs loan level MBS analysis and Forensic File
Review, including Re-underwriting of existing pools/securities for the
purposes of updating ratings. Work as approved third party to verify and due
diligence inbound mortgages under new “best practices” going forward as well
as providing enhanced loan level MBS performance monitoring.
M&A for Financial Firms with Existing Mortgage Positions. To
assist M&A teams in their quest for accurate valuations, our team performs
Mortgage Pool analyses and provides strategic advisory services regarding
the servicing and sales of mortgage portfolios.
 Mortgage Originators. To identify and prevent bad loan
origination, we help connect the dots - FICO manipulation, sophisticated
data misrepresentation, schemes and data verification tools that are not
always adequate to identity and quantify the three key data issues:
identity, income, and collateral risks. In addition, our expert underwriters
work with originators’ fixed cost for underwriting and QC services to
deliver highly cost-effective loan level risk mitigation per transaction. |
