Mitigating Losses Through Innovative Solutions
Digital Risk compliance and surveillance solutions provide interactive assessment and mitigation of operational, credit and counter-party risk exposures. Proactive services protect against costly legal, reputational and financial perils of such exposures, and address the challenges of tougher standards and stringently enforced lending laws.
Compliance
Digital Risk’s compliance solutions provide diligent, up-do-date analysis to make certain portfolios adhere to changing regulatory demands, compliance supplements, GSE requirements and state and federal laws. Collateral documents, including the note, addenda, mortgage, deed of trust, title, policy, etc., are reviewed for status and exceptions to ensure accuracy and completeness.
Digital Risk’s compliance solutions begin with an extensive securitization document review performed by on-staff securitization attorneys. Then, assets in a portfolio are monitored to identify early warning signs of problem loans. We proactively manage potential losses by monitoring property valuations and facilitating prompt servicer action on delinquent accounts. Digital Risk mitigates losses by actively communicating surveillance findings to the appropriate parties and outlining the steps they may take in response to surveillance findings.
Digital Risk’s experienced analysts and underwriters leverage advanced analytic and business rule driven technology to provide proactive, detailed default risk estimates for whole-loan residential mortgage portfolios and collateral at both the pool and loan levels. Performance reviews include insight into default and loss severities. Reporting and analytics are customized to client specifications and include:
- Seller performance
- Estimated credit/compliance/valuation error rate
- Investors’ rights
- Servicing contractual requirements
- Underwriting guideline risk analysis
Digital Risk’s comprehensive review covers:
- Collection efforts (borrower contact)
- Loss mitigation
- Modification recidivism
- Cash management/lockbox
- Third-party vendors
- Foreclosure and bankruptcy
- Claim payment calculation
- REO
- Investor reporting and accounting
Surveillance
Digital Risk’s surveillance solutions begin with an extensive securitization document review performed by on-staff securitization attorneys. Then, assets in a portfolio are monitored to identify early warning signs of problem loans. We proactively manage potential losses by monitoring property valuations and facilitating prompt servicer action on delinquent accounts. Digital Risk mitigates losses by actively communicating surveillance findings to the appropriate parties and outlining the steps they may take in response to surveillance findings.
Digital Risk’s experienced analysts and underwriters leverage advanced analytic and business rule driven technology to provide proactive, detailed default risk estimates for whole-loan residential mortgage portfolios and collateral at both the pool and loan levels. Performance reviews include insight into default and loss severities. Reporting and analytics are customized to client specifications and include:
- Seller performance
- Estimated credit/compliance/valuation error rate
- Investors’ rights
- Servicing contractual requirements
- Underwriting guideline risk analysis
Digital Risk also provides default servicer oversight to review and analyze default processes, including:
- Collections, validation and analysis of default reporting data
- Reconciliation and processing non-performing loan liquidations
- Analysis of loans with high losses and excessive liquidation timelines
- Servicer claims and remediation
- Collaborating with servicer to improve performance
As a highly-regarded and trusted independent surveillance provider, Digital Risk uses a synergistic combination of proprietary business rules driven technology, advanced analytics and experienced seasoned default servicing professionals to uncover loan, pool or bond level performance and systemic issues. We then aggregate data from multiple servicers into a single, consolidated report to ensure the servicer is adhering to industry standards, as well as their service agreement.
Services include:
- Servicer and portfolio performance management, comparison and benchmarking
- Issue resolution
- Monitoring of open remediation action plans
- Loan administrative surveillance
- Escrow administration
- Internal Controls
Digital Risk surveys:
- Collection efforts (borrower contact)
- Loss mitigation
- Modification recidivism
- Cash management/lockbox
- Third-party vendors
- Foreclosure and bankruptcy
- Claim payment calculation
- REO
- Investor reporting and accounting
