Whole Loan Capital, LLC
WholeLoans.com
Portfolio Analysis - Residential
Portfolio analysis can be as comprehensive as needed. A simple portfolio analysis consists of:
- Tape cracking
- Portfolio stratification with attention paid to high risk aspects
- Cash flow model
- Loss assumptions
- Loss mitigation/refinance options
Simple analysis may not be enough however. It won't catch the details needed to differentiate between portfolios with few and many problems. What's needed is an experienced eye to spot issues, and an understanding of the entire
mortgage origination and servicing process.
Having a full understanding of the how, why and who will give a much better
certainty relative to pricing and loss assumptions.
The following items, in addition
to critical credit stratifications, are important and will potentially have a material
impact on portfolio returns:
- The
origination channel; wholesale/correspondent/retail
- Loan
guidelines and exceptions
- Existence of piggybacks/HELOCs
- Loan
operations structure
- Management
structure and compensation
- Fraud
- Production
commission structures
- Loan
origination systems
- Secondary
marketing function
- Loan
closing operations/process
- Intended and actual loan investor
- Origination
entity’s reputation/history/issues
- Servicing
entity history/reputation/issues
- Servicer loss mitigation capabilities
- Servicer management and compensation
- Mortgage, note, and title errors and deficiencies
- Custodian
reporting/operation
- Data
integrity
While this list isn’t
comprehensive, it does highlight the need for a full understanding of all
aspect of a loan portfolio in order to get the best possible performance and
results.
Further analysis can consist of site visits, loan file (collateral and/or
credit) review, servicer assessment, even legal document review.
Please contact Whole Loan Capital, LLC for further information.