CoreLogic has gained approval from Standard & Poor's to provide third-party due diligence for RMBS rated by the agency.
CoreLogic Due Diligence performs diligence services for residential mortgages and small balance commercial loans such as forensic due diligence, nonperforming loan reviews, acquisition and securitization reviews, data integrity reviews and quality control.
The firm is working with an increasing growing number of issuers, originators and investors on pre-securitization and loan quality projects.
An earlier ASR article stated that the providers of due diligence services have more skin-in-the-game in the current market now that rating agencies have very stringent requirements to certify them. It also offers underwriting support to press or defend buy-back claims.
“The certification process that we undergo now and the minimum standard of review didn’t really exist before,” said Charlie Cacici, a managing member at RMG. “This is a way of luring back investors to RMBS transactions.”
DBRS recently approved RMG to offer third-party loan level reviews for RMBS. This would be for both pre- and post-securitization and for transactions that the agency rates.
Also recently RMBS and CMBS due diligence provider Clayton Holdings has been approved by DBRS as a third-party due diligence firm for RMBS offerings.
Mark Hughes, CoreLogic vice president, heads the due diligence business that operates two underwriting centers in Jacksonville and Sunrise, Fla.
“To attract investors back to private-label mortgage securities, issuers must deliver greater transparency and demonstrate that they have employed the best available tools to identify and reduce risk,” Hughes said. “CoreLogic is already a major provider of the diligence, valuation and fraud detection services that many lenders and investors use. With our S&P approval we will now offer unique data-enhanced diligence/underwriting solutions to identify forensic issues, value portfolios and help originate securitizable loans. As private-label mortgage securities issuance returns, we will be there to provide the ‘new diligence’ that all market participants will demand.”