MDMC can help you with agency securitizations. As a result of changes occurring throughout the mortgage and banking industries, seasoned and newer production portfolio securitization has become an important issue for capital purposes, liquidity, loan loss reserve relief and profit generation.
For each transaction, the agencies typically expand their standard guidelines based on the makeup of the individual portfolio and the lender's situation. We have the experience, systems, procedures, proven methodology and the people to maximize your agency delivery.
We can help you securitize the greatest number of loans in the fastest time frame with our seasoned securitization services. Our approach is to provide the agencies with the detailed information needed to make their risk assessment, determine the loans they'll accept and establish the guarantee fee. Each review is tailored to the specific portfolio, based on seasoning and the seller's comfort with the portfolio. A typical review may include:
Tape Analysis and Agency Edits – We start with a tape of the portfolio to be securitized, stratifying and analyzing the portfolio to determine product types, ARM indices, caps, margins, occupancy, purpose, etc. We also edit the loans using Mornet/Midanet edits. The purpose of this analysis is to determine loans that aren't eligible (such as corporation loans, non-conforming loan size, etc.), evaluate the completeness and quality of the data, and design the level of the review to be done.
On-site Review Structuring – Based on the tape analysis, we work with you to determine the depth of the review. The review could include:
- Full agency underwriting for unseasoned loans
- HMDA data collection
- Database confirmation of all deliverable Mornet/Midanet fields
- Legal document review (including presence and completeness of all legal documents, such as endorsement and assignment chains)
- Completion of missing database information
- Research and clearing of agency edits
- Note libraries created for each unique ARM note type and prepayment penalty types
On-site Review and Database Creation – Our team of experienced underwriters will go on site to perform the review in time frames specified to meet agency delivery dates. MDMC's laptop review system is used by our staff to complete a detailed examination of each loan. The reviewed information is edited by the system to create a clean, comprehensive database for the portfolio. Details of the cleansed database are provided to you so the servicing system may be updated.
Agency Submission-Pricing – Once the updated database is complete, we create reports and tape information in formats required by the agencies. This information, along with the note library, is submitted to Fannie Mae/Freddie Mac for analysis so they can determine a credit-eligible universe and guarantee fee levels or cash bid. We are available to address agency questions and run customized reports, should this be needed.
Pooling and Agency Mornet/Midanet Transmission – Working with you and the agency, we pool the loans per agency guidelines. Using the clean database, we create the required delivery schedules and transmit via Mornet/Midanet.
Facilitate Custodial Certification – We will work with third-party custodians to ensure certification. If necessary we can create the custodial files and send to the appropriate custodian.
We also can provide the following additional services for a seasoned loan securitization:
- Creation of agency assignments
- On-site pooling and endorsing
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 discover how we can meet your specific agency securitization needs.