Mortgage Banks
Mortgage banks have seen profit margins erode over the past several years due to increased regulation and more stringent lending practices. Frequent ongoing changes and volatility in the securitization market result in reduced sources of funding, thereby causing operational challenges. Banks must adapt to this new environment by focusing on innovation, velocity, compliance and quality. Opus CMC’s quality control services keep banks ahead of the curve on mortgage compliance and risk management issues. We perform in-depth reviews focused on aligning regulations and guidelines from investor specific requirements.
Relevant Services:
- Evaluate quality standards for secondary market investors
- Pre/Post closing quality control review
- Test for past and recent changes to High Cost, RESPA, MDIA, TRID and QM regulations
- Ensure complete coverage of regulations with assignee liability.
- Property value reconciliation
Issues of Importance:
- Guideline validation and conformity
- Risk Rating Recommendations
- Avoidance of future financial losses
- Understand and manage risks
Benefits of Opus CMC’s Product and Delivery:
- Minimize risks associated with non-compliance
- Alleviate the risk of repurchase
- Confidence in originating compliant loans
- More accurate pricing
Loan Originators
Loan originators must be nimble to capture market opportunity in their specific geographic and business areas. Moving quickly to capture sales volume can often lead to a lack of focus on closing deals and ensuring a positive customer experience. Process adherence and risk management is often a challenge for small and mid-size organizations. Opus CMC provides scalable resources and technology to help loan originators meet expectations from investors. Our experience in working across the mortgage continuum with sellers, intermediaries, and investors, coupled with the deep understanding of mortgage products and typical deficiencies, will help our client become proactive in managing risk in originations.
Relevant Services:
- Manage process flow and data with consistent analysis
- Review and audit policies and procedures
- Pre/Post closing quality control review
- Repurchase rebuttals
- Validate underwriting to ensure accuracy and highlight risk areas
- Credit assessment
- Compliance assessment
- Property value reconciliation
Issues of Importance:
- Guideline validation and conformity
- Risk rating recommendation
- Avoidance of future financial losses
- Understand and manage risks
Benefits of Opus CMC’s product and delivery:
- Facilitate consistent and comprehensive procedures
- Minimize risks associated with non-compliance
- Alleviate the risk of repurchase
- Confidence in originating compliant loans
- More accurate pricing
Conduits
Conduits and issuers of mortgage securities and whole loan offerings have the responsibility of structuring products and solutions that result in liquidity for the mortgage market, while creating an attractive and safe investment vehicle for private investors. It is important for conduits to have transparency and trust in their relationships with sellers and buyers. Opus CMC provides a high degree of transparency with results that are based off a rigorous and well-tested quality control process. These identify deficiencies at a loan level, and portfolio level and can be easily understood and remediated by partners.
Relevant Services:
- Manage process flow and data with consistent analysis
- Review and audit policies and procedures
- Pre/Post closing quality control review
- Repurchase rebuttals
- Validate underwriting to ensure accuracy and highlight risk areas
- Credit assessment
- Compliance assessment
- Property value reconciliation
Issues of Importance:
- Guideline validation and conformity
- Risk rating recommendation
- Avoidance of future financial losses
- Understand and manage risks
Benefits of Opus CMC’s Product and Delivery:
- Facilitate consistent and comprehensive procedures
- Minimize risks associated with non-compliance
- Alleviate the risk of repurchase
- Confidence in originating compliant loans
- More accurate pricing
Govt. Agencies
Opus CMC has vast experience in providing reviews for conforming loans. Government agencies can take advantage of our underwriting processes, technology and talent to accurately identify issues in their portfolio holdings and new purchases. Whether it is performing, non-performing, re-performing or sub-performing loans of any vintage, Opus CMC has specific expertise and the capability to evaluate across different credit and compliance parameters, representations and warranties provided by the sellers, or specific agency guidelines.
Relevant Services:
- Review and audit policies and procedures
- Pre/Post closing quality control review
- Repurchase or litigation preparation review
- Validate underwriting to ensure accuracy and highlight risk areas
- Credit assessment
- Compliance assessment
- Property value reconciliation
Issues of Importance:
- Guideline validation and conformity
- Risk rating recommendation
- Avoidance of future financial losses
- Understand and manage risks
Benefits of Opus CMC’s Product and Delivery:
- Facilitate consistent and comprehensive procedures
- Minimize risks associated with non-compliance
- Alleviate the risk of repurchase
- Confidence in originating compliant loans
- More accurate pricing
Mortgage Insurers
Private Mortgage Insurers (PMIs) have an important role in the mortgage market. The coverage provided by PMIs is a critical component in establishing trust in mortgage transactions. PMIs must safeguard their business and the insured from the impact of mortgage risk due to fraud and lack of compliance and risk management procedures. There is a need for more clarity on loan quality upfront and continued monitoring to ensure that remediation efforts are taken quickly. Opus CMC helps mortgage insurers understand the loan level and portfolio level details of risk factors that lead to default events. These results are carefully segmented to present the severity and impact.
Relevant Services:
- Identify remedial cures
- Assess materiality of loan defects
- Litigation and repurchase reviews
- Loan defense reviews
- Credit, fraud, collateral, regulatory compliance, and data verification
Issues of Importance:
- Guideline validation and conformity
- Risk rating recommendation
- Avoidance of future financial losses
- Understand and manage risks
Benefits of Opus CMC’s Product and Delivery:
- Mitigate losses
- Identify potential fraud
- Detailed and accurate information for repurchase or litigation
Investors/Trustees
Investors in mortgage bonds need solutions to protect their capital and ensure that proactive risk mitigation efforts are undertaken by servicers, while getting clarity on performance. Opus CMC has worked with investors across the spectrum to support their proactive risk management strategies. The market environment in the mortgage industry also presents different opportunities to purchase whole loan pools with different risk features. Understanding the imminent risk in these pools and categorizing it is important to deriving value from these trades. Opus CMC has a strong background in advising on trades of performing, non-performing, sub-performing and re-performing loan pools.
Relevant Services:
- Data Integrity
- Loan level and pool level reviews to determine breaches
- Credit and compliance assessment
- Pay History and servicing comment review
Issues of Importance:
- Accuracy when valuing holdings
- Loan performance obstacles
- Accurate calculations of losses and claims
Benefits of Opus CMC’s Product and Delivery:
- Ensure loan performance maximization
- Identify potential fraud
- Improve value of assets
- Manage value of portfolios
- Mitigate risks associated with interest holders in the portfolio
