MountainView provides monthly valuations on non-performing, re-performing and performing loans for clients with portfolios ranging in size from $10 million to $10 billion. We are in a unique position to provide clients with comprehensive pricing insights using our well established valuation methodologies, coupled with market color and other valuable insights from our Transaction Advisory team.
We can value the following loan types for you:
Our valuation methodology incorporates a blend of market and credit research, internal and external collateral models, and seasoned judgment to determine the correct set of performance assumptions that drive an asset's projected cash flow and fair value. The fair value analysis process is dependent on collateral evaluation as well as a review of appropriate market transactions and general market indications.
The foundation of our valuation process is a fundamental collateral analysis that we use to generate performance assumptions to produce the projected collateral cash flows. Each loan in the pool being evaluated is individually analyzed based on its projected performance which takes into consideration appropriate market-based data.
Our valuation approach is dependent on the specific performance characteristics of each loan. For performing and reperforming loans, we utilize a pricing model that is cash flow driven and takes into account the loan type, and we apply appropriate prepayment and default assumptions. We also take into account pool characteristics and historical performance, including prepayments, defaults and loss severity, to project losses, including loan modifications and pay histories.
For non-performing loans, our approach is based upon the calculation of net proceeds assuming the loans are liquidated. This analysis takes into account factors such as the estimated timeline to liquidation, the HPI forecast and estimated recovery value and loss projections for the underlying real estate.
Once the fundamental collateral analysis is complete, we apply appropriate discount rates to calculate fair value. We rely on a diverse set of market references to determine the most appropriate discount rates specific to our base case performance scenario for each asset, including:
We will provide you with full transparency of the inputs and assumptions used in our valuation process.
A more detailed look at our residential mortgage loan valuation procedures are set forth in the diagram below:
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