In early 2014, when marketplace lending was experiencing rapid acceptance as a mainstream sector of the financial services industry, we began valuing consumer loans originated by marketplace lending platforms. We value marketplace lending loans and mortgage servicing rights for some of the sector's largest platforms and investors.
MountainView's marketplace lending loan valuation process incorporates a blend of market and credit research, proprietary models, and expert judgment to determine the correct set of assumptions that drive an asset's expected cash flow and ultimate fair value.
The foundation of our valuation process is a fundamental analysis that we use to generate performance assumptions to produce the projected cash flows. We individually analyze each loan in the pool based on its projected perfromance that takes into consideration appropriate market-based data.
We use a diverse set of references to determine the most suitable assumptions for use in the valuation model, including:
This reference information is combined with MountainView's knowledge of historical performance and dynamic risk characteristics.
Once the fundamental collateral analysis is complete, we use platform-specific primary rates to determine discount rate assumptions.
We will deliver to you a comprehensive marketplace lending loan and servicing valuation report that includes the following data points:
MountainView has successfully completed a SOC 1 Type 2 examination for its analytics-based advisory services. The corresponding report states that our description of our complete analytics-based advisory services system was fairly presented, the controls related to the control objectives stated in the description were suitably designed, and the controls tested operated effectively.