Case Study

Helping Squeeze Better Results From Non-Performing Mortgages

Client

The client was a British mortgage servicer with thousands of non-performing residential mortgages and a staff shortage on their special assets team. The staff was required to report on the status of those loans each week and make sure their strategy for each was the best available. In addition, they also had a very tight timeline of only six months to close out the pools on hand.

Challenge

Full inboxAsset managers were investing a great number of hours extracting data from the loan administration system in preparation for their weekly portfolio reviews. In spite of the attention to detail and the tremendous number of hours, the servicer staff often found they were unable to take timely and meaningful action. All too often, events that directly impacted the account happened much faster than the team could manage, despite their best efforts.

As big as this challenge was, an even greater demand loomed on the horizon: the client had just won a $2 billion portfolio of commercial mortgages. The mortgages in this pool required annual reviews and quarterly reports which were far more elaborate than their systems were capable of producing. This was in addition to the workload they were already facing.

Collaboration

To address both the existing and looming challenges, the ­client contacted EaseCap. The EaseCap Response Team met with the client's asset management team, collections team, reporting team, business process team, plus their IT group and senior management. Starting with a Non-Performing Loan module created for modeling distressed commercial mortgages, EaseCap tailored a system to serve the needs of these disparate groups.

After the assessment and strategy meetings were complete, a tactical approach was outlined that took each team's role into consideration. The EaseCap Response Team was then able to create a tailored design for managing distressed mortgages of all types, addressing the primary needs of all groups involved.

EaseCap

Working with the client's deployment team, EaseCap developed a solution for both groups. With the EaseCap Asset Management solution, the client's asset managers and portfolio managers could now speak the same language. When the Net Present Value (NPV) of an alternative strategy becomes better than the current strategy due to changes in facts on the ground, managers can now respond immediately. This enhanced responsiveness ensures that the client knows they are following the best strategy for a given property. And even better, the client can now explain clearly and simply why the alternative strategy is best and illustrate the positive impact.

Result

Today, the client's asset managers manage more properties per manager as before - and in less time. With the limited number of skilled asset managers in today's market, the EaseCap tailored solution has provided a priceless performance advantage for the client's management team.

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At EaseCap, we serve the commercial mortgage market.
We get the right information into the right hands at the right time to make the best decision.
Clarence Dixon, former Managing Director, TBE

"I worked with EaseCap during my tenure as Managing Director of TBE in Brussels. I found the EaseCap team easy to work with. They helped my organization in two areas: shadow servicing and management of non-performing commercial mortgages. Unlike many technology firms, they focused on the business issues instead of digging into technology for its own sake. EaseCap helped me deploy technology solutions to address my core business concerns."
© 2017 EaseCap