A national mortgage lender sought to acquire several mortgage companies. Our client asked us to review samples of loans from each prospective acquiree to evaluate loan quality, for both underwriting and compliance, prior to moving forward on the acquisition.
Securitization Due Diligence
In anticipation of securitization, multiple clients have engaged CrossCheck to perform due diligence on non-QM portfolios. The reviews are designed to meet rating agency requirements and included analyses of credit, compliance, collateral, and data accuracy.
Due Diligence Review of Residential Mortgage Loans
We were engaged by a regional bank to review a sample of loans from three proposed separate bulk whole loan purchases. The bank requested we determine whether the portfolios which were predominately conventional and jumbo loans, were originated in compliance with regulatory requirements. All disclosures required by Regulation Z- Truth-in-Lending and Regulation X – Real… Read more »
Post-Purchase Portfolio Review
Upon a client’s acquisition of the assets of a failed bank, CrossCheck performed a credit and documentation review of the acquired loans and interviewed loan department personnel at the failed bank. The review uncovered issues and loan documentation errors that posed credit and financial risk to our client. Our review provided the information needed to… Read more »
Due Diligence Review
CrossCheck was engaged to perform an assessment of an acquisition target’s commercial loan portfolio and other real estate owned to identify concerns regarding the quality and collectability of the portfolio prior to purchase. CrossCheck’s review uncovered the lack of both adequate loan monitoring and basic loan administration procedures. This independent assessment allowed our client, the… Read more »
Second Lien Portfolio Repurchase Review
A large regional bank, who had purchased a portfolio of second lien loans on a servicing retained basis, was concerned that the original underwriting was not as represented and was dissatisfied with the servicing. CrossCheck reviewed the loan origination and servicing contracts to understand each party’s rights (e.g. repurchase, termination of servicing) and performed a… Read more »
Mortgage Fraud Review
The mortgage subsidiary of one of the nation’s largest banks requested a forensic review of residential mortgage loans acquired from various mortgage lenders and correspondent banks. CrossCheck’s team of mortgage fraud experts reviewed loans to determine the existence of material misrepresentation, which would result in a request to repurchase the loan. CrossCheck determined on which… Read more »
GSE Repurchase Reviews
CrossCheck has assisted a number of its clients who received repurchase requests from Fannie Mae and/or Freddie Mac. CrossCheck performed a forensic review to verify the allegations in the GSE repurchase demand. Where appropriate, CrossCheck prepared the rebuttal letter and supporting evidentiary file, successfully rebutting thousands of repurchase demands.