Investors

Investors are faced with challenges from deteriorating asset values from poorly serviced troubled legacy mortgages to regulatory, legal and credit risk on newly originated mortgages. These challenges are more difficult for investors to manage due to the distance and opaqueness between the originating entity or servicer of the mortgages and the final investor. It is here that Black Diamond Sentinel's (BDS) suite of tools can deliver clarity and accountability to provide risk transparency for newly originated mortgages and troubled legacy mortgages.

For trouble mortgages Black Diamond Sentinel has developed propriety systems that reduce re-default risk of a mortgage by creating a long term sustainable position for homeowners through our modification system. This is achieved by applying real world metrics and a borrower information validation system to provide a clear path forward. Each modified loan is not only assigned a new Probability of Default (PD) and Loss Given Default (LGD) but is stress tested against a variety of potential economic conditions.

Investors are now taking an active role in monitoring that mortgage originators are preforming all of the required regulatory disclosures such as Truth in Lending and Good Faith Estimates to make sure the loans they purchase have reduced regulatory and legal risk. However, in the ever changing landscape of mortgage origination, gaps are appearing that open investors to new legal and regulatory risks. At BDS we have developed automated systems that close these gaps by providing investors assurances of loan level borrower engagement and analytics to provide risk transparency. Our systems are designed to reduce risk while providing investors front line systems that produce accountability and transparency.