Mortgage Lenders
Mortgage Investors Trader Due-Diligence/Valuation Mark-to-Market Mortgage Insurers

Due-Diligence/Valuation

Situation
It doesn’t take many bad loans in a pool of hundreds to dramatically affect the value of a mortgage-backed security.  With today’s less predictable real estate market and mortgage fraud dramatically rising, spotting questionable loans is more important than ever.  Sampling a small percentage of loans in a pool no longer offers adequate risk protection, yet analyzing the entire pool using conventional methods is far too costly and time consuming. 

Solution
First American CoreLogic’s automated solutions allow you to perform 100 percent due diligence on every pool considered.  Batch processing enables you to quickly stratify the pool into high- to low-risk gradients, showing you which loans to examine more closely.  You set the guidelines on how gradients are determined and provide business rules on what to do with loans meeting pre-set criteria.  Low-risk loans may only require processing through one or two of our tools; medium- and high-risk loans may require additional tools using a bump-logic filtering system that provides deeper examination levels.  We work closely with investors to set the filters based on their risk-tolerance policies and business rules.  The result is a pool examined to the level of detail you desire.  With poor-risk loans clearly identified, you can establish a realistic fair-market value for the pool that will benefit your investors. 

We also work closely with investors to examine loan-pool data and help establish a fair-market price.  Our due-diligence experts are also available to serve as a disinterested third party during arbitration, explaining the findings and the logic behind an established price.  The full-service approach is designed to provide customized solutions tailored to the specific needs of each investment group.

 

CoreLogic Tools

First American CoreLogic suggests the following tools for this role:

LoanSafe RDS™

LoanSafe®

IncomePro™

HistoryPro™

Atone™

AVMSelect™

Investor Services™

 

 

 

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