Deep Mortgage Knowledge               

Whole Loan Capital, LLC

Buying Whole Loans - Risk Lurking

Loan Risk Lurking


In 2005, every major Rating Agency had teams of PhDs, quants and data analysts combing over every new RMBS to determine ratings. All of them got it wrong.


“It’s hard to predict the weather if you’ve never gotten wet”


So how do you know the loans you're buying are good?  You can have Clayton or AMC underwrite them, pull fraud reports, review appraisals, and still miss some sizable landmines. 


The loan risk starts with a comprehensive data review to spot high risk elements inside pools, high risk originators, correlated party involvement, recurring product "pushing" and other potential issues that could come back to haunt you down the road.  An experienced eye can spot things others miss.


Find issues, for example, by considering things like:

  • LO, 
  • NMLS data, 
  • Lender, 
  • Channel, 
  • Production selection veracity, 
  • Loan pricing,
  • Loan “themes”
  • Vendor selection,
  • Data integrity, and
  • countess other traits that surface in different pools.

Only an experienced eye can find red flags others missed.



About Us

Whole Loan Capital can provide broad experience and capabilities in mortgage finance.  

Disclaimer - This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities.

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