Distressed Investing
Distressed loan opportunities require a system that not only acts as a data repository and system of record, but one that can also support rigorous loan analysis and customized reports. SSI’s Loan Management System (LMS) is ideally suited for distressed loan investing due to its ability to manage loan data and processes while providing a platform for robust analytics.
The loan process within LMS can be designed to follow your proprietary process flow. For example: A collateral analyst loads bid tapes into LMS, generates collateral reports, and interfaces with your own pricing and valuation models to determine the value of the package. Upon winning the package, trade details are captured and the due diligence process begins. Loans selected for due diligence are sent to a third party; results are loaded into LMS and loan eligibility is determined. Concurrently, the collateral documents can be reviewed and certified. LMS generates a final loan population and creates the funding memo. All parties involved in the transaction will automatically receive notification of final details of the closed transaction.
Post settlement, LMS helps manage the servicing process by loading servicing data automatically via LoanTalk and updating loan information.
Distressed investors use LMS to:
- Interface with proprietary models, including loan valuation, risk and recovery models
- Automatically interface to third party due diligence, appraisal and credit services
- Interface with servicers
- Perform servicer surveillance and oversight activities, such as P&I reconciliations
- Capture and report on historical servicing data capture
LMS’ reporting and querying engine can generate customized reports and exports. Examples include:
- Collateral overview, strats, and structuring rep-lines
- Aggregate and detail views of inventory
- Position reporting by delq/foreclosure buckets
- Trend reports
- Loan-level exports in a variety of output formats
- Ad-hoc queries at an aggregate or loan level
In addition, LMS can be easily configured to reflect your process flow.
LMS is easily configurable and can thus evolve as the investor’s strategy evolves. The Managed Platform solution, where users log-in over the Internet and SSI technical staff maintains the system and database, allows investors to be up and running quickly while maintaining scalability, flexibility and enterprise-ready features.
