Problem: A Northeast bank wanted to use a large and diverse residential mortgage loan portfolio as collateral for a structured financing; however, the institution lacked meaningful records to assess or manage its portfolio.  Moreover, the portfolio was serviced by nearly 100 separate servicers throughout the country.

Solution:  BPA profiled the portfolio and developed a strategy to implement better control over the portfolio.  Our staff physically reviewed each loan file to determine its compliance with both Standard & Poor’s and Moody’s whole loan rating criteria.  Next, we formulated a database to support our findings, and created a master servicing operation within the bank to assure ongoing control.  The qualifying assets were then assigned and delivered to an independent trustee.

Our work helped the bank organize and provide the collateral needed for an important financing and strengthen operating control over the portfolio.  Through our work, the bank implemented a master servicing operation at a fraction of the cost an external master servicer would charge.  The collateral was successfully used to secure  note financing.

Note:    Actual client names have been removed due to confidentiality issues.