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Top 10 Residential Originator/Servicer
- The Value Added:
We were retained to validate a "Hold versus Sale" analysis regarding
several non-strategic European, Australian and Latin American mortgage
platforms. We implemented a series of country specific initiatives
resulting in "sale" decision for certain countries and a "Hold and
Wind Down" decision for the remaining countries with incentive fee
structures to align the incentives of the Company's outsourced
service providers with those of the Company. This strategy
significantly reduced expenses while maximizing cash flows on the
Company's portfolio. Read more...
- The Problem:
We were retained to assist a leading residential mortgage
company with global operations validate a "hold versus sale"
analysis to assist Senior Executives with making determinations
regarding non-strategic European, Australian and Latin
American business units.
- The Solution:
After analyzing the Company's operating platforms, financial
performance and balance sheet in each jurisdiction, we
implemented a series of country specific initiatives designed
to optimize the Company's risk-adjusted returns.
In some instances, there was sufficient interest to
enable us to achieve pricing levels which justified the "sale"
decision.
In other countries, the decision was made to retain assets
and out-source operations to established local mortgage servicers.
We implemented incentive fee structures to align the
outsourced vendors incentives with those of the Company and the
Company retained a small on-site team to oversee the vendor.
Leading Private Equity Fund
- The Value Added:
We developed the strategy to maximize IRRs and CRMs for a leading
private equity fund that recently acquired a $10 billion portfolio
of Performing and Non-Performing sub-prime home equity loans. We
partnered with retail loan originators to offer borrowers a debt
forgiveness/refinance campaign utilizing a loan specific methodology
tied to the Fund's loan level acquisition costs. We provided
credit counseling to assist ineligible customers clean up errors
on credit reports and to retire credit lines and thereby improve
credit scores. This targeted refinance and credit cure campaign
enabled the Fund to exceed targeted IRRs and CRMs.
Read more...
- The Problem:
A leading private equity fund acquired a $10 billion portfolio of
performing and non-performing sub-prime home equity loans and
needed of a strategy to maximize IRRs and CRMs.
- The Solution:
We identified several retail loan origination partners to work on
a coordinated basis with the Fund's servicer to offer borrowers
a debt forgiveness/refinance campaign.
We designed a loan specific methodology to determine the
requisite level of debt forgiveness needed to achieve sufficient
equity to qualify for available loan products (FHA/VA) and achieve
IRR targets based on the cost of the loan to the Fund.
We designed a program to assist ineligible and delinquent
customers to clean up errors on credit reports and receive credit
counseling to enable them to retire credit lines and thereby
improve credit scores.
After sufficient loan seasoning, these borrowers were
solicited for the debt forgiveness/refinance campaign.
Bear Stearns - Mortgage Servicing
- The Value Added:
Rapid growth presented significant operational and management challenges
for Bear Stearns EMC Mortgage Servicing Unit. We oversaw a $40 million
capital improvement program focused on process improvement and
automation and aggressive vendor management and off-shoring. This
project enabled the Company to address the significant strains on the
operations, reduce the annual expense base and realize enhanced
servicing loan performance.
Read more...
- The Problem:
The heavy volumes of mortgage loans purchased by Bear Stearns
and limited investment in its EMC Mortgage servicing operation
was presenting significant operational and management challenges.
- The Solution:
We oversaw a diagnostic of the EMC Mortgage Servicer and
identified extensive manual and redundant processes, over
taxed systems and inefficient utilization of personnel.
We implemented a $40 million capital improvement
program focused on process improvement and automation and
aggressive vendor management and off-shoring.
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