Large Scale Asset Management
A large mortgage banking firm with assets in excess of $10 billion. Boston Portfolio Advisors is the asset manager for the Liquidating Trust, which holds the assets from the bankruptcy estate. BPA was hired to manage the Debtor’s assets and ensure maximum portfolio performance.
The underlying loans in the portfolios were mostly home equity, high LTV, and more traditional second mortgages with balances originally over $11 billion. Boston Portfolio Advisors supervised nine servicers, eight securitization trustees, and over 110 assets from 90+ securitizations. We valued every asset and sold all assets. Following is a general description of our general responsibilities.
- Managed all loan portfolio operations
- Oversaw and directed the loan servicers
- Monitored and evaluated servicer reports and data reporting.
- Evaluated servicer performance and issues, identified corrective actions, and implemented the recommended actions.
- Managed all other operational items (e.g., office space, payables and receivables, telephones)
- Supervised other parties as needed
Confirmed the expected cash flows through analysis and ensured that expected cash flows were realized through tracking and reporting
- Verified and ensured collection of all fees due
- Extensively monitored the performance of all loan servicers to ensure that the underlying loans were performing to the highest possible standards, in order to ensure that the residuals performed to the highest possible level and maintained maximum value.
- Valued securitization residuals
- Determined best execution for the assets and sold assets as appropriate
- Developed and/or validated securitization cash flows:
- independently confirmed the model structures to the securitization documents
- independently develop a starting set of assumptions to run the models
- developed initial valuation levels and performed a sensitivity analysis on each securitization
- For each securitization, updated the prepayment curve and prepayment rate assumptions, updated delinquency assumptions, updated default and recovery assumptions, updated market discount rates and pricing assumptions, and updated other relevant model assumptions
- Entered the updated assumptions into the models and calculated updated values
- Evaluated the results for reasonableness, internal consistency, and external market benchmarks
Asset Sales and Deal Management
- Identified potential buyers for assets
- Prepared the offering document
- Managed the sales process
- Negotiated price, closing documents, and closing dates
- Structured the deal
- Provided deal closing support
Asset Performance Tracking and Reporting
- Built the tracking and reporting systems needed to independently track activity and asset performance
- Issued a monthly surveillance report that compared actual to projected asset performance
- Performed monthly cash flow analysis