Loan Servicing Due Diligence
We provide investors with a detailed review of the performance history of all, or a sample of, loans in a portfolio based on historical transaction and servicing information provided by the sellers of target pools. These reviews provide investors with a good understanding of borrowers’ circumstances (employment status, reason for arrears, specific issues facing borrowers, borrower proposals, etc.). They help investors to assess the cashflow profile of a particular investment and ultimately the value of the pool. The information obtained during due diligence also forms an excellent starting point for us to develop a case management, servicing and portfolio level business plan for the loans if the pool is acquired.
Real Estate Due Diligence
Our in-house real estate team is led by an experienced Chartered Surveyor, who provides support through:
providing a range of valuation options, including drive-by, desktop and automated valuations, carried out by a tightly controlled panel of professional firms;
assistance in evaluating and understanding the information provided in those reports;
testing the report results through additional desktop reviews and local market research on likely sale or rental values.
Legal Due Diligence
We coordinate the loan file and title reviews on target pools conducted by legal firms based on parameters agreed with, and set by, the investors.
Early Stage Portfolio Assessment
Based on preliminary pool data received from the sellers, our team divides the pool into designated categories by apparent risk characteristics and assumed overall credit quality. Loans and/or properties in high risk categories are flagged for special consideration, assisting investors in determining a value and agreeing a price for the target pool. This provides an excellent starting point for a servicing plan and strategy on a loan-by-loan basis after the acquisition.
After completing our analysis and receiving all due diligence reports, we present a clear summary of the results for a sampling of the target pool (typically focused on high value properties or large loans and those identified as high risk assets) in a roll-up meeting with investors to help with their assessment of the target portfolio.