With the volatility in the credit and capital markets in today’s economy, BPA leverages its experience and expertise to provide highly refined valuation services.
The asset classes we work with include:
- Sub-prime through prime consumer loans and leases
- Residential mortgage loans
- HELOCs
- Auto loans and leases
- Private student loans, credit card receivables
- Commercial loans and leases
- Multifamily and commercial mortgage loans
- Commercial loans
- Equipment loans and leases
- Asset based lending facilities
- Aircraft
- Litigation contingent fee advancements
- Ocean marine
- Charged-off consumer loans and receivables
- Venture equity
- Special situations
Within the above classes, BPA has experience in:
- Whole loans and leases
- Securitized residuals and tranches
- Servicing portfolios
- Servicing advances
- Put-back exposure
There are numerous uses for BPA valuation reports:
- Financial statement preparation
- Independent confirmation of client valuations
- Private equity
- Business decisions
- Transaction support
- Litigation support
- Alternate dispute resolution
- Feasibility analysis
- Charitable donations
- Special situations
Who uses BPA’s valuation reports?
- Management teams
- Investors
- Law firms
- Regulatory agencies
BPA’s geographic coverage
- North America – USA, Canada, Mexico
- Europe including Russia
- Asia – India, China, Singapore, Australia, New Zealand
- Latin America – Argentina, Brazil, Chile, Columbia, Panama, Costa Rica, Nicaragua
- Caribbean nations
Specialty capabilities
- Pools of loans and leases
- Securitization residuals
- Structured finance
- Private equity
- Distressed assets and situations
- Complex assets
Some BPA case studies
The case studies below are composites of valuations BPA has completed, so as to protect the confidentiality of individual engagements.
Mortgage securitization residual valuation
Situation – a dozen mortgage securitization residuals needed to be valued at a point in time 5 years prior to the date BPA completed the valuation. There were no credible cash flow models for any of the securitizations.
What BPA did – created complete cash flow models of each of the securitizations; developed valuation assumptions; stress tested the models and assumptions; ran the models to clean-up call dates and to final maturity; calculated the present value of residual cash flows; made adjustments for market conditions at the time; adjusted for prospective REMIC tax obligations. Reconciled valuations were completed.
Commercial mortgage loan portfolio valuation
Situation – mid-sized commercial bank found itself in a dispute with its regulators over the appropriate write-down amount of a distressed commercial mortgage loan portfolio. An independent valuation of each loan as of the prior fiscal year-end was required.
What BPA did – built a complete loan administration history of each loan; secured “retro” property valuations at the as-of date; inspected every property; secured and reviewed updated property cash flow statements; assessed the creditworthiness and capacity of every guarantor; secured independent secondary whole loan market estimated of value; developed reconciled values for each loan. Based on BPA’s valuation, the dispute was quickly resolved.
Brazil FIDC
Situation – USA-based investors in a Brazilian FIDC wanted an independent valuation of the fund’s assets at several points in time. The assets were primarily Brazilian charged-off consumer receivables.
What BPA did – reviewed with Brazilian counsel the FIDC charter and receivables acquisition documents; discussed market conditions with local brokers, bankers, and rating agency professionals; adapted BPA’s receivables valuation model to the FIDC’s portfolio; developed valuation assumptions, generated discounted cash flow forecasts; secured independent market / sale value estimates; developed reconciled values and ranges at each required point in time.
Independent confirmation of value of a portfolio of Mexican distressed mortgage loans
Situation – a private equity firm invested in a portfolio of delinquent Mexican mortgage loans. It needed periodic independent confirmations of its internal valuation levels
What BPA did – tested and validated the firm’s cash flow models; evaluated evidence and confirmed enforceability of the mortgage loans; evaluated micro and macro economic and employment conditions and trends; evaluated and stress tested the cash flow projections supplied by the firm; compared actual cash flows to the firm’s projected cash flows; reconciled items, making a small adjustment to the private equity firm’s internal valuation level.