In this article from National Mortgage News, the importance of due diligence on mortgage collateral files is highlighted. NTC has published a worthwhile White Paper on this particular topic.
Due diligence has taken on an entirely different shape in the post financial crisis world. Increasingly, regulators, investors and banking executives are looking deeper into the individual loan files whenever a pool of loans sells, is acquired through merger or acquisition or is securitized. The industry has come to the realization that if we hope to be successful with a portfolio we purchase, make the most of a new entity we acquire or make the best use of the capital markets to fuel our businesses, we must mitigate all of the risks that are lurking within that portfolio. These risks are higher for seasoned loans, which are subject to many problems and those problems are detailed in our White Paper.
The paper we wrote dives into:
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The Threats the Industry Faces and the High Cost of Failure
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Uncovering the Hidden Risks
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Successful Risk Mitigation for Loan Sales or Securitization
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Finding the Problems to Mitigate the Risks
To find out more about a due diligence process that can both uncover and cure problems in the collateral file in a timely and affordable manner, call Nationwide Title Clearing today.
