When it comes to due diligence underwriting reviews, each client's requirements and expectations are different. MDMC offers the ideal solution with a proprietary review system that provides a fully customized due diligence underwriting review designed to meet your unique needs. Our team uses a highly organized, hands-on process that ensures the timeliness and accuracy of the due diligence performed for each transaction.
Due Diligence Process
To meet our clients' individual due diligence needs, we use our proven underwriting system and technology that's designed for a comprehensive, accurate loan review. Each review covers critical data issues, legal document issues, credit underwriting, and federal, state and local compliance. Our entire team is committed to getting all deliverables to you on time and accurately. Specialized and client-specific teams provide targeted review of transactions and continual results feedback during the process.
Our due diligence team consists of only the best, most experienced professionals, all focused on providing exceptional, personalized service:
- Deal manager – Dedicated deal managers maintain client partnerships and work with other MDMC team members to ensure the results of the due diligence process are clear, concise, timely and accurate. Your deal manager is your primary point of contact for all needs and information, and will work closely with you to review the results of the transaction to determine which loans will ultimately remain in the deal.
- Lead underwriter – An expert lead underwriter manages the transaction, working with both the underwriting and quality control staff throughout the process to ensure the quality and completeness of each transaction.
- Quality control underwriter – The QC underwriter provides random and diagnostic reviews of edits, illogical information and red flags to ensure consistency and accuracy.
- Underwriting team – Our experienced underwriters review loans according to relevant guidelines and stipulations, verifying legal documentation, performing credit underwriting analysis and full regulatory compliance review, along with confirming that the data represents what is in the loan file.
Tailored Reports
Throughout the due diligence process, we generate the customizable reports you need to properly evaluate the results of each transaction and the status of your project, including:
Summary Report – Our system will organize hundreds of data points at the loan level and then create comprehensive, user-friendly reports to help you understand exactly what you are purchasing.
Asset Detail Report – A clear, concise loan-level report outlines key credit and compliance characteristics of each loan and presents our review results for that loan.
Due Diligence Event Grade Report – Loan-level results for all loans, based on our determination of whether the loan adheres to both credit and compliance guidelines. Each loan is rated using the following event grades:
Underwriting event grades
- Adheres strictly to originator guidelines
- Exceptions represent acceptable risk
- Represents large, possibly unacceptable risk
Compliance event grades
- Complies with RESPA, TILA, HOEPA, state and local regulations
- Exceptions represent immaterial infractions of RESPA, TILA, HOEPA, state and local regulations.
- Represents an unacceptable serious compliance violation
Data Comparison Report – Results reflecting any difference between the loan-level data provided on the tape and information collected during our actual due diligence review.
Customized Data File of Results – Along with our many different standard reports, our system provides a customized data file to meet our clients' specific needs. Simply tell us your requirements and we will deliver your reports.
Due Diligence Sample Selection
For clients who want us to select a due diligence sample, we use the portfolio summary reports as a basis for selecting an appropriate sample of loans for review. The sample selection may be tailored to meet a specific confidence level or it can be a mix of randomly and adversely selected loans to create a certain sample percentage.
Quality Control
Our experienced team of due diligence underwriters performs a meticulous review of all loans. During the process, the lead underwriter and quality control manager will sample loans and review edit reports to determine the accuracy and quality of each underwriter. This continual feedback and “on the fly” consultation with the underwriters not only increases the quality of the underwriting, but also identifies issues prior to reporting results to our clients.
We look forward to sharing our expertise and insight with you as we partner together to create customized solutions to your business needs. Contact us to see how we can meet all your due diligence review needs.