Mortgage Industry Professionals Launch Allon Financial
Mortgage professionals Sue Allon and Daniel Gallery have formed Allon Financial, a mortgage due diligence provider focused on helping clients understand, manage and reduce risk, as well as improve returns by making informed whole loan trade and bond buying decisions.
The Denver, Colo.-based firm will deliver a variety of analytical, advisory and consulting services to clients including hedge funds, mutual funds, private investors, government agencies, ratings agencies and mortgage originators and service providers. The primary business line is due diligence, with specialties in seasoned performing and nonperforming loan reviews and quality control for agency delivery, according to a company release.
Allon has also purchased Edison Mortgage Decisioning Solutions, aprovider of due diligence and data and analytics reporting. Edisons assets, including its staff of mortgage analysts and its proprietary due diligence technology, will become part of Allon Financials service delivery model.
The events of the past year have shown the catastrophic consequences of a fundamentally flawed mortgage due diligence model, which must be re-invented to bring back confidence and liquidity to the market, Allon said. Due diligence must evolve from a report to support a loan purchasers pricing decision to a disclosure document on which investors and others can rely. Its time for due diligence to become a high value-added, insight-driven assessment of risk, rather than a superficial report on loan file contents.