ContiFinancial was a large mortgage banking firm with assets in excess of  $10 billion.  Boston Portfolio Advisors is the asset manager for the CFN Liquidating Trust, which holds the assets from the ContiFinancial bankruptcy estate.  BPA was hired to manage the Debtor’s assets and ensure maximum portfolio performance.

The underlying loans in the ContiFinancial portfolios are mostly home equity, high LTV, and more traditional second mortgages with balances now approximating $9 billion.  Boston Portfolio Advisors supervises nine servicers, eight securitization trustees, and assets from over 90 securitizations. We have valued every asset and have sold a number of assets.  Following is a general description of our general responsibilities. 

Operations Management

·          Manage all loan portfolio operations

-          Oversee and direct the loan servicers

-          Monitor and evaluate servicer reports and data reporting.

-          Evaluate servicer performance and issues, identify corrective actions, and implement the recommended actions.

·          Manage all other operational items (e.g., office space, payables and receivables, telephones)

·          Supervise other parties as needed

Financial Management

Confirm the expected cash flows through analysis and ensure that expected cash flows are realized through tracking and reporting

·          Verify and ensure collection of all fees due

·          Extensively monitor the performance of all loan servicers to ensure that the underlying loans are performing to the highest possible standards, in order to ensure that the residuals perform to the highest possible level and maintain maximum value.

·          Value securitization residuals

·          Determine best execution for the assets and sell assets as appropriate

·          Develop and/or validate securitization cash flows:

-          independently confirm the model structures to the securitization documents

-          independently develop a starting set of assumptions to run the models

-          develop initial valuation levels and perform a sensitivity analysis on each securitization

-          For each securitization, update the prepayment curve and prepayment rate assumptions, update delinquency assumptions, update default and recovery assumptions, update market discount rates and pricing assumptions, and update other relevant model assumptions

-          Enter the updated assumptions into the models and calculate updated values

-          Evaluate the results for reasonableness, internal consistency, and external market benchmarks

Asset Sales and Deal Management

·          Identify potential buyers for assets

·          Prepare the offering document

·          Manage the sales process

·          Negotiate price, closing documents, and closing dates

·          Structure the deal

·          Provide deal closing support

Asset Performance Tracking and Reporting

·          Build the tracking and reporting systems needed to independently track activity and asset performance

·          Issue a monthly surveillance report that compares actual to projected asset performance

·          Perform monthly cash flow analysis