Hilltop Advisors’ senior team has been thinking about how to help our clients address the current economic and operational challenges. We would like to discuss a proven approach to navigating the current environment and to let you know that we are ready to help! Hilltop was engaged for the Consent Order work (2011-2013) that targeted the largest servicers. We deployed a very senior, industry experienced management group for the bank that we were involved with. Hilltop’s deep resource pool was tapped for staff and we deployed 135 consultants in a short period of time as needed. We know this approach works! While the Consent Order was somewhat different, there were many issues to address and many findings to track and remediate. Most importantly, Senior management is better able to handle the operational challenges when they have a very senior team that knows your business – lending, capital markets and loan servicing. So how can we help?
First – Hilltop’s “Engage” team will provide a “sounding board” for your Company in which our leadership team will listen and discuss the lending/servicing business issues, challenges and possible solutions and/or recommended actions that can be taken.
Second – Who will help? Hilltop has a team of senior, industry experienced consultants and accountants that can assist you with navigating the financial and operational challenges of doing business in the current environment. Our senior team that will be helping you includes:
Jeff Oliver, CPA, CFF, CMB, 40+ years focused on the bank and mortgage banking business, CEO of Hilltop, National Team Leader for KPMG’s Lending, Securitization and Servicing. Client Lead for KPMG’s and BearingPoint’s largest mortgage clients and Fannie Mae, Ginnie Mae and FHA.
Don Davis, 40+ years in consumer lending and mortgage servicing, held servicing manager and default roles for several Top 10 servicers, claims technology designer, commercial, multifamily, CRE, ADC loan experience,
Dena Somers, Esquire, 20+ years focused on risk, compliance and legal areas for mortgage, consumer and servicing companies, in-house counsel and chief compliance officer, speaker for Nexus-Lexus, practiced law with firm client in financial services industry,
Chris Galloway, 20+ years focused on trading mortgages and securities, provided M&A acquisition diligence/valuation, Citibank internal auditor, FHFA Examiner for all 11 FHLBs, modeling/review of EY securitization clients,
Most of our consulting staff have 10-20 years in financial services consulting, auditing and employee roles.
Third – how can Hilltop help and what can we do? (we can play a lead role, a team member role and/or Hilltop staff plays an staff augmentation role). Hilltop’s “Engage” team can work with you and your employees to:
1. help evaluate and prioritize the issues and concerns by staying with or ahead of the issues,
2. help plan and define the actions needed to be taken in the various parts of your business (also provide staff if needed to complete),
3. assess whether the “planned actions” are having the planned impact and to make changes when appropriate,
4. perform financial management data analysis, risk calculations, cost calculations and reporting to management, example activities may include but are not limited to the following:
o assessing and calculating the financial impact of high refi levels and/or increasing delinquencies/mods/foreclosures,
o tracking the impact of delinquencies and servicing advances on cashflows/liquidity,
o modeling the need for additional funding (warehouse and advance funding),
o assessing the securitized assets’ cashflows and “trigger events”,
o identifying the impact of the pandemic – losses incurred or likely forthcoming,
o providing specific financial reporting for the current environment as identified by Management the Hilltop team,
5. perform ongoing risk management assessments that may include but are not limited to the following:
o measuring the increase in counterparty risk relating to borrowers, guarantors, mortgage brokers/correspondent lenders, loan servicers, vendors, warehouse lending customers, etc.,
o performing/reviewing commercial loan risk ratings and related estimated credit risk up to the current date, performing default projections, calculating loss impact if any,
o prioritizing high risk customers and planning loss mitigation efforts,
o identifying regulatory compliance risks for lenders, servicers, employers, etc. (Hilltop has teaming options with several law firms to bring business and legal skills to help your Company if needed), and
o dealing with other risks that may be unique to the Company.
6. performing ongoing operational assessments that may include but are not limited to the following:
o tracking business volumes (applications, closed loans, loan sales/securitizations, new loans added to servicing and increases in loans going delinquent and those entering the loss mitigation process,
o identifying the impact on turn times (originating a loan, delivery to and payment from investors, foreclosure timeframes, etc.),
o identifying new staffing needs and targeting employees that can be “repurposed” to other more important functions during the current state of the industry, and
o identifying loan sales risk, slow investor purchases, more refusals to purchase, etc.
7. assisting with specific tasks that are focused on “dealing with the pandemic or its impact on the economy, such as:
o identifying potential Fed/State assistance for businesses,
o coordinating with HR team on identifying employee issues and available aid,
o tracking/accounting for costs for affected employees to claim as tax credits,
o working with your attorneys on legal matters that require financial and operational data and procedures to be in place.
8. creating weekly reporting to Board and/or Management to provide a “total picture” of what the Company is doing to deal with the impact of the current economy and pandemic relative to the operational, compliance, risk and financial issues that the Company is facing.
We are a small business but we have all worked in large firms and our large network of project based employees who average 15+ years of lending, capital markets or servicing professionals can put Hilltop’s size with the biggest of our competitors. But quality is what gets the job done and we have a lot of very skilled industry resources.
We would like to discuss how Hilltop can extend our support and professional experience in helping your Company meet the challenges that you are facing. Give us a call or send us an email.
