Residual Valuation for Specialty Finance Home Equity Lender Litigation

As part of a litigation case, a specialty finance home equity lender hired BPA to value their six securitization residuals and determine whether their value was adversely impacted by improper servicing. As part of this project we:

  • Developed a set of assumptions to run the cash flow model
  • Modeled the securitization cash flows
  • Performed a sensitivity analysis on the securitization
  • Evaluated the resulting cash flows for reasonableness
  • Determined realistic present values for the residuals.

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