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Complete Securitization Solution for RMBS Issuers Unveiled by Allonhill

In an announcement Thursday, ""Allonhill"":http://www.allonhill.com/, a Denver-based third-party review firm specializing in mortgage due diligence and credit risk management, said it has formally released a complete securitization solution for issuers and underwriters of residential mortgage-backed securities (RMBS).


Allonhill's approach is the first complete stabilization solution for RMBS issuers that incorporates the latest industry requirements in the wake of the mortgage collapse. The solution provides a high level of transparency and reliability concerning the loan underlying securities, and it offers issuers a turn-key solution by meeting the requirements of all four major credit rating agencies for third party review firms.

This new approach incorporates new requirements for major credit rating agencies and scientific sampling methodologies and practices that are documented and incorporated into the system. In addition, tracking and reporting of loan errors, exceptions, and their resolutions are incorporated, as well as a signed attestation of Allonhill's review procedures, findings, and its disclosure.

""We are rewriting the securitization process,"" said Sue Allon, CEO of Allonhill. ""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.""

The creation of Allonhill's securitization solution follows the new rating agency requirements released in 2008 by Andrew Cuomo, New York Attorney General. Cuomo called for better sampling methodology and error resolution procedures, stricter third-part review firm qualifications, and ongoing monitoring of securities. To ensure its securitization solution meets all new requirements for public and private securitizations, Allonhill consulted with four leading rating agencies, including ""Standard & Poor's"":http://www.standardandpoors.com/home/en/us, ""Moody's Investor Service"":http://www.moodys.com/cust/default.asp, ""Fitch Ratings"":http://reports.fitchratings.com/, and ""DBRS."":http://www.dbrs.com/

""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 Diana Mead, Allonhill president and CEO. ""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.""

Every aspect of the securitization process is included in this new solution, from pre-sale due diligence, transaction preparation, and rating agency compliance to post-securitization risk monitoring. Allonhill's offering also includes a desk reference manual for clients detailing rating agency requirements and the firm's sampling methodology.

In addition, Allonhill analysts have access to a whistle-blower service, Ethics Point, which gives confidence to investors that the due diligence process if free of outside influence, and the third-party service enables anyone working on a securitized transaction to instantly and anonymously report attempts to modify data or otherwise influence Allonhill's findings. As part of this new approach, Allonhill also adopted the ASF's new universal mortgage loan identification code, ASF LINC.

About Author: Brittany Dunn


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