Loan Servicing Due Diligence
Based on historical transaction information and servicing notes provided by the sellers of target pools, Pepper can provide investors with a detailed review of the performance history of all or a sample of the loans. Such a review provides investors with a good understanding of the borrowers circumstances (employment status, reason for arrears, specific issues facing borrowers, borrower proposals etc.), and thus help investors in assessing the value of, and a possible investment in the pool. The information obtained during due diligence also forms an excellent starting point for us to develop a case management and servicing plan for the loans if the pool is acquired.
Real Estate Due Diligence
Our in-house real estate team is led by a vastly experienced Chartered Surveyor and can provide support in a number of ways.
These include the provisions of a range of valuation options including drive-by, desk top and automated valuations, carried out by a tightly controlled panel of professional firms; assistance in evaluating and understanding the information provided in those reports; and testing the report results through additional desk top reviews and local market research on likely sale or rental values.
Legal Due Diligence
We coordinate the loan file and title reviews on target pools conducted by legal firms based on parameters agreed with and set by the investors.
Early Stage Portfolio Assessment
Based on preliminary pool data received from the sellers, our team will segment the pool into designated categories by apparent risk characteristics and assumed overall credit quality, with loans and/or properties in high risk categories flagged for special consideration; thus assisting investors in determining a value and agreeing a price for the target pool, as well as providing an excellent starting point for a servicing plan and strategy on a loan-by-loan basis following acquisition.
Loan File "Roll-up"
Following receipt of all due diligence reports, we present a clear summary of the results for a sampling of the target pool (typically focused on high value properties or large loans, and those identified as high risk assets) in a roll-up meeting with investors to facilitate their assessment of the target pool.