Allonhill, an independent third-party review firm specializing in mortgage due diligence and credit risk management, have announced the formal release of a complete securitization solution for issuers and underwriters of residential mortgage-backed securities (RMBS). The new approach to securitizations offers issuers a turn-key solution by meeting the requirements of all four major credit rating agencies for third party review firms.
Allonhill’s approach is the first complete securitization solution incorporating the latest industry requirements in the wake of the mortgage collapse. The approach provides a high level of transparency and reliability concerning the loans underlying securities.
“We are rewriting the securitization process,” said Allonhill CEO Sue Allon. “We’re proud to be the first third-party review firm to market with a comprehensive approach addressing the needs of a variety of market participants, to help bring our industry back to life in a responsible way.”
Allonhill’s approach incorporates:
►New requirements of major credit rating agencies
►Scientific sampling methodologies and practices that are documented and incorporated into the system
►Tracking and reporting of loan errors, exceptions and their resolution
►A signed attestation of Allonhill’s review procedures, findings and their disclosure
New York Attorney General Andrew Cuomo issued new rating agency requirements in 2008 calling for better sampling methodology and error resolution procedures, stricter third-party review firm qualifications and ongoing monitoring of securities. Allonhill consulted with four leading rating agencies--Standard and Poor’s, Moody's Investors Service, Fitch Ratings and DBRS-–to ensure its securitization solution meets all new requirements for public and private securitizations from each of the agencies. Allonhill’s offering includes a desk reference manual for clients detailing rating agency requirements and the firm’s sampling methodology.
“While the rating agencies share the goal of restoring transparency and credibility to the securitization market and meeting new regulatory and statutory requirements, they each go about it in a different way, forcing issuers and other market participants to confront a variety of securitization standards,” said Allonhill President and Chief Operating Officer Diana Mead. “Allonhill literally has written the book on rating agency requirements and the most effective way to navigate the third-party review process in today’s climate.”
The new approach includes every aspect of the securitization process, from pre-sale due diligence, transaction preparation and rating agency compliance to post-securitization risk monitoring.
Allonhill analysts also have access to a whistle-blower service, Ethics Point, giving investors a new level of confidence that the due diligence process is free of outside influence. The third-party service enables anyone working on a securitized transaction to report attempts to modify data or otherwise influence Allonhill’s findings, instantly and anonymously.
Allonhill also adopted the ASF’s new universal mortgage loan identification code, ASF LINC.
For more information, visit www.allonhill.com.