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US RMBS Third-Party Review Firms Continue Their Growth

Third Party Review (TPR) firms have continued their growth in US RMBS due diligence despite some slowdown in private label securitization activity. The TPR’s primary focus has been on Non-QM product along with increased involvement in closed-end second (CES) mortgages and home equity line of credit (HELOC) products.

Fitch has added two TPR firms to its coverage over the past five months and now views 24 firms as “Acceptable” for work on RMBS transactions. The newly added firms are Clarifii LLC and Indecomm Global Services. Clarifii LLC is a privately held firm based in Chagrin Falls, OH that offers customized loan level due diligence with a focus on credit, valuation and compliance services. Indecomm Global Services is a privately held firm located in Edison, NJ that specializes in automation and enhanced loan level due diligence.

Fitch’s TPR firm review process includes a qualitative assessment of each firm’s RMBS experience and evidenced work along with its involvement in industry initiatives. Fitch’s assessment process includes a detailed questionnaire about operational performance metrics such as:

  • Company management and staffing
  • Underwriting process
  • Quality control
  • Valuation review process
  • Compliance
  • IT and reporting

Fitch’s current list of “Acceptable” TPR firms includes:

  • Adfitech, Inc.
  • Canopy Financial Technology Partners, LLC
  • Clarifii LLC
  • Clayton Services LLC
  • Consolidated Analytics, Inc.
  • Covius Real Estate Services, LLC
  • CrossCheck Compliance LLC
  • Digital Risk, LLC
  • Evolve Mortgage Services, LLC
  • Incenter LLC d/b/a Edgemac
  • Indecomm Holding, Inc. d/b/a Indecomm Global Services
  • Infinity International Processing Services, Inc.
  • Inglet Blair, LLC
  • Maxwell Diligence Solutions, LLC
  • MetaSource, LLC
  • Mission Global, LLC
  • Opus Capital Markets Consultants, LLC
  • Phoenix Collateral Advisors, LLC
  • Recovco Mortgage Management, LLC
  • Residential Real Estate Review
  • Selene Diligence LLC
  • SitusAMC
  • Sutherland Global Services, Inc.
  • The Stonehill Group, Inc.

TPR firms perform independent reviews on a sample of loan files backing RMBS transactions in order to:

  • Compare reported loan-level data against information in the loan file
  • Review if the loans were underwritten according to stated underwriting guidelines
  • Confirm whether the values of the underlying properties are supported
  • Determine if the loans were originated in accordance with laws and regulations

To read the full release, click here.

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport magazines with more than eight years' writing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News, the Orange County Register, in addition to 11 other Southern California publications. A former editor-in-chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington, she has covered events such as the Byron Nelson and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, Lester is a jazz aesthete and loves to read. She can be reached at [email protected]

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