The Hilltop Companies’ senior team has been involved in the asset backed and mortgage backed securitization business over the past 30+ years. We have played a number of different roles including working for the issuer, securities dealer, trustee, servicers (regular, special, and master servicers), investors, auditors, and consultants (to help with policies, processes, technology, valuation of tranches, etc.). We understand this highly complex business, its risks, its operational issues, and the accounting for such. We can assist your company if you are involved in or need help with any of the following activities:
- Deal cash flow modeling, determining assumptions, assessing results, comparing/contrasting to other third party models,
- Performing due diligence on the underlying assets, the data validation, determining or validating the disclosures, etc.,
- Identifying and resolving asset servicing issues – with any of the servicing functions – regular servicer, special servicer, master servicer,
- Performing servicer compliance audits,
- Recalculating and assessing Incentive Compensation, if applicable, to Special Servicers,
- Assessing compliance with PSA,
- Calculating Trustee payments, auditing the trustee function, comparing to Trustee’s cash flow calculations,
- Identifying and/or testing Reg AB disclosures, and
- Other specific document, data, process or functional assessments related to the particular securitization transaction.
The securitization market will “come back” however there are looming new regulatory requirements which will tighten controls over such transactions. The compliance aspect of the securitization transactions will become a much greater focus for all parties to the transaction. More diligence in general will be required. Our senior team understands the impact on issuers, servicers, dealers, rating agencies, trustees, etc.