National Mortgage & Consumer Lending Services (MCL) kpmg.com

Transcription

1 National Mortgage & Consumer Lending Services (MCL) kpmg.com

2 The mortgage and consumer lending industry has experienced unprecedented changes. Financial services and housing are the nation s most challenged economic sectors, and the industry is under the scrutiny of regulators, lenders, consumers and the public media. New reforms, regulations and agencies, such as the Consumer Financial Protection Bureau, have been established to help manage ongoing industry risk.this dynamic environment directly impacts a mortgage and consumer lending organization s financial, operational and regulatory requirements, so organizations must manage related risks. How KPMG Can Help Our experience covers the operational and financial pillars of the Mortgage and Consumer Lending industry and is augmented by our sister KPMG practices of FS Regulatory and FS Performance andtechnology, and Forensics Assistance. The Loan Life Cycle & The Four Pillars Loan Origination & Secondary Marketing Operations & Finance Loan & Portfolio Servicing Operations Portfolio/Finance & Accounting Post Loan Sale Pre-qualification Loan File Set-Up/On-boarding Modeling & Model Validation Regulation AB readiness and consulting Processing Payment Processing Capital Markets CDO/CLO Note Valuation Reports Underwriting/Scorecards Appraisals Pre-closing Closing Funding Post-closing Pipeline Management/Best Execution Shipping & Delivery Rate Locks & Hedging Tax & Insurance Escrow Management Investor Reporting Custodial Accounting & Doc Management Delinquency Management Loss Mitigation Third Party Vendor Management Cross-sell Maximization Portfolio Retention Customer Service (Inbound and Outbound) Securitization/Whole Loan Sales/Portfolio Loan, Portfolio, and ABS/MBS Valuations Liquidity Accounting Advisory ALLL ALM Capital Requirements Servicing Assets Risks related to Warehouses, SPVs, and Correspondences Hedging CDO/CLO, REMICs, PFICs, CFCs, ships, Grantor Trust, NIMS, Mortgage REITs Waterfall Payment Verification Market Discount and Original Issue Discount Tax Calculations Representation & Warranty Assessments Efficient Tax Structuring Tax Loan Modification Calculations REMIC Schedule Q/Excess Inclusion and PFIC / 5471 gathering and reporting Bad debt deduction support Integrated computation reporting platform REGULATION/COMPLIANCE/AUDIT PERFORMANCE AND TECHNOLOGY FORENSICS ASSISTANCE

3 What We Do: Representative Service Offerings Operations and Processes Operational assessments Process improvement services Business process flow mapping Underwriting Assistance (Automated Programs, QC, Scorecard Development, Compliance) Analytics & Credit Risk Management Behavioral and cash flow model validation and development Loan loss reserve forecasting process reviews and FAS 5 model validation Migration analyses for roll rate determination and collections operations efficiencies Credit data mining and Evaluation of credit data mart design and utilization Credit analytics gap assessments, process reviews and roadmaps Valuation Services Residential and commercial mortgage and asset-backed Securities valuations Assistance with estimating loan losses associated with distressed mortgages Reasonableness reviews of management s valuation model and assumptions Mergers and acquisition due diligence and advisory Consumer Whole Loan Pools Servicing Assets Servicing Operations Loan Boarding Document Management Vendor Management Investor Reporting Management and Regulatory Reporting Performance Management Dashboards Costing Analysis Business Intelligence Benchmarking/Gap Analysis Consumer Compliance Regulatory examination/litigation preparedness and/or assistance Compliance management program and governance reviews Fair lending assessments and ongoing monitoring Third party vendor management reviews for consumer compliance Accounting,Tax and Other Assurance Services Structured products cash flow RMBS, ABS, and CMBS Agreed- Upon-Procedures and Transaction Services Other-than-temporary impairment analysis, and policy reviews ASC 860, ASC 810, ASC review and project management Benchmark studies, market surveys, and trend analyses Interest Rate Risk Asset-liability management (ALM) Mortgage pipeline and hedging Model validation for ALM & mortgage pipeline management Risk Management Consulting Liquidity Strategies Technology Services Risk, compliance and financial package implementation Contact center technologies and process redesign Testing (unit, system and UAT, stress) Implementation planning and rollout, including training Model Development Lease Accounting Model Effective Yield Model FDIC Loss Share Tracking and Reporting Model Tax Reporting Modules Servicing Rights Valuation Modeling Basel III Modeling CDO & CLO PFIC and CFC Tax Reporting QEF and other investor tax compliance Effective Date Procedures, Payment Date Procedures, and Monthly Report Procedures Transaction Services Default Management Gap analyses of meeting Treasury, GSE, and regulatory requirements Transactional testing for loss mit (incl. loan mods) and foreclosures; credit/compliance policies and procedural violations Fraud detection and prevention review analyses HAMP/HARP Post Loan Sale Payment Verification Regulation AB readiness and consulting Securitization Vehicle Tax Compliance and Reporting Market Discount and Original Issue Discount Tax Calculations Significant Loan Modification Calculations and Model/System Solutions (Tax) Representation and Warranty Exposures Program/Project Management Large-scale program initiatives Small to mid scale project initiatives Program/project reporting facilitation Staff augmentation in the field by subject matter professionals

4 The KPMG Advantage The National Mortgage and Consumer Lending Practice is: A group whose offerings span operational needs such as business process improvement and re-design, compliance assistance with new regulations, and financial analysis at the portfolio and loan level. A National Subject Matter Professional Group with approximately 200 fully dedicated professionals focused on the complex and ever-changing financial, operational, and regulatory needs of the mortgage and consumer lending industry. Our approach allows us to provide comprehensive services by drawing on the resources of our financial, accounting and tax services to the securitization industry. Our experienced Structured Finance professionals leverage their skills and sophisticated technology to help identify, analyze and resolve a range of financial, liquidity and regulatory challenges, including managing credit, interest rate, balance sheet and other risks, and preparing for strategic activities such as asset acquisition and liquidation, and mergers and acquisitions. We provide broader advisory services, as well as external and internal audit subject matter assistance to the majority of Financial Institutions, Government Agencies, and Specialty Finance Companies. For example: Five of the top 10 global institutions Five of the top 8 US banks Four of the top 10 Fortune 1000 commercial banks Seventy percent of the top 15 Mortgage and Consumer Lending Companies In addition to mortgage lending companies and government sponsored entities, we serve the following consumer lending asset classes: Credit Cards/Unsecured Debt Auto/Equipment Leasing Student Lending Non-bank Retail/Utilities 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved NSS

5 MCL Contacts Mark Twerdok U.S. Credit Risk Services Leader Kimberly Davis-Riffe Viktor Beletskiy Principal Pedro Goitia John Hermle Shelley Lee Hing David Pang Anthony Sepci Tina Stoliar Douglas Williams