Conduit Due DiligenceMeticulous RMBS due diligence raises loan quality by 22% and data integrity by 30%
Introduction
A Top 5 U.S. bank was looking to successfully navigate the changing regulatory and compliance market to improve quality and reduce risks in RMBS transactions.
Challenges
In an ever-changing credit and regulatory environment, the client struggled to address a multitude of challenges. These included rigorous requirements on borrower qualifications, enhanced regulatory oversight, and constant compliance updates that resulted in increasingly complex transactions.
Given the potential for severe penalties and high delivery costs, the client wanted to ensure accurate and actionable intelligence at the loan and portfolio level to mitigate risks.
Solution
The client decided to collaborate with Opus CMC, leveraging our deep due diligence expertise to ensure that loans met the requirements for purchase, sale, and mortgage securitization.
Our experts established a thorough and stringent quality control process to meet national credit rating organization’s requirements for RMBS transactions.
- Conducted Investor Credit Criteria Eligibility Review.
- Liaised with bank’s seller clients for purchase approvals.
- Ensured compliance with national credit rating organization for RMBS transactions.
- Provided independent third-party valuation support.
- Enabled ASF-based RMBS reporting.
- Ensured regulatory compliance, including QM/ATR, TRID, Municipal, State and Federal Anti-Predatory Lending, and High-Cost Testing.
Impact
Opus CMC’s technology-driven mortgage due diligence solution provided the client with accurate results for better execution:
- 22% improvement in loan quality, yielding better pricing
- 30% increase in data integrity
- Lower back-office support costs due to effective seller-client relationship management
- Increased seller-client satisfaction
