Founded a Platform to Evaluate​ Massive Loan Pool Acquisitions, and Optimize Collateral & Asset Management to Drive Future Strategies for a Leading U.S. Bank

A leading U.S. bank needed a technology and services solution that would allow it to conduct effective due diligence on enormous loan pools in a short time frame to facilitate informed decision-making and reduce risk. It also wanted a partner to help cure loan issues during pre-close diligence and manage the assets after closing, to facilitate nimble execution on disposition, securitization or other strategies.

SitusAMC, which had previously provided due diligence on legacy assets in smaller pools, built out a bespoke technology platform that integrates the lender’s specific risk criteria and purchase policies. The system categorizes and sorts loans into “verticals” using a layered waterfall of exceptions, prioritized to reflect the level of severity. The software applies multiple regulatory tests to analyze the risk associated with an event, parsed by where and when the loan was originated, to ensure conformity with the client’s investment guidelines. The platform empowers the bank to automate buy/no buy decisions at a high level to ensure faster, more efficient and lower-risk execution.

In addition to the bespoke classification solution, SitusAMC was engaged to provide pre-close collateral and post-close asset management for its whole loan portfolio acquisitions. After the bank purchases a set of loans, SitusAMC maintains them in its proprietary system. When the investor is ready to sell, SitusAMC can provide a live snapshot of the collateral at a portfolio level, showing all the loans with documents and data related to servicing. This facilitates better intelligence and more nimble execution of the bank’s disposition, securitization or other strategies.