Marketplace Lending Loans

Our fair value measurement follows ASC 820 guidance in accordance with generally accepted accounting principles, and is performed by a team of highly experienced valuation and data analysts within a SOC 1 Type 2 environment.

Marketplace Lending Valuation Solutions

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.

Valuation Methodology

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:

  • A regression model for prepayments and defaults that is tuned to platform or portfolio performance
  • MountainView and third-party databases
  • A review of publicly available information, including financial disclosures for comparable assets

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:

  • A summary of your valuation, cash flow projections, inputs and assumptions, and loan stratification reports
  • The output of the pricing model, including projected losses, weighted average life, duration, pool and loan-level prices
  • Customized reporting that is tailored to meet your specific needs and requests

Quality Control Environment

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.