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Mortgage Servicing Rights that have been sold to speciality servicers contain servicing errors that are transferred to the buyer. Unless the buyer demands remediation from the seller, these errors can come back to bite the buyer badly.
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MSR Impairment FinderMortgage Servicing Rights (MSR’s)
Portfolio Services: “MSR” Loan Level Verification 2014
DescriptionE-bRM: performs pre/post purchase automated diagnostic examinations of MSR collateral. This prophylactic action is design to save our clients; time, money, and prevent potential regulatory entanglements with legacy damages that may be embed in the portfolio. Currently, “MSR” operational risk has proven to be problematic and difficult to resolve using conventional tools, usually requiring; extensive manual expertise, expense, and labor.Solution: Is provided by a team of high profile talent in the fields of; Finance, Mortgage Law, and Technology using an advanced multi faceted mortgage default platform (Nexus-MDP).
Phase I Analysis: Involves the segregating and cataloging of mortgage regulatory breaches of the tainted loans in default. All licensed patent pending applications have been tested and vetted for speed, accuracy, and execution in some of the largest mortgage banking corparations in the United States.
Two Platforms : Includes:o Nexus-Mortgage Defualt Platform: involves a series of integrated multi-functional
applications.Note: Proprietary series of licensed application tools - unique to this investment.
o Probability of Default Platform: Next generation Financially Engineered mortgage valuation application.Note: Proprietary Financial Scoring Strategy - unique to this investment and available in Phase II as and advanced option.
_____________________________________________________________________________________________________________ Start-upSigned SOW: Each project is tailored to our client’s individual portfolio requirements.Project Term: TBD (Depending on portfolio size, complexity, and client timeline)Loan Count: A minimum of 500 loans will be required with fix startup costs and scalable pricing.
_____________________________________________________________________________________________________________ Roll-OutOutline of Tasks: (i) Review MSR Agreement (ii)Set up (iii) Analysis – (iv) Recommendations/Summary
MSR Agreement: A contract review of the MSR purchase agreement will be conducted. Collateral Set-Up: Will require, accessing, formatting, and segregating mortgage default
loans that are in scope. Upon completion, results will be compiled and project deliverables will be determined.
Analysis: Selected loans will be examined for; RESPA violations, improper cash disbursements, and valid third party documentation from both the courts and independent third party vendors. In addition, proper sequential collections of payments and fees will be calibrated to insure integrity of the recorded document.
o “Athena’ application (sample): Documentation and $ Dollar verification through electronic scanning of receipts from all sources related to the loan file can access over 100 separated inquires (Including the courts, outside services & legal). Process will take between 45 to 50 seconds to complete and advance into the loan compliance file.
Recommendations: will be presented to the client. Phase II: Upon guidance from the client, an E-bRM remediation desk will be available to
work with both the buyer’s and seller’s to satisfy the agreed upon trade adjustments and remittances.
Phase I Summary: Report will identify and segregate all in scope loan level breaches in the MSR portfolio.
E-bRM, LLC [email protected]
