Talk of increased transparency is in the air, and Wells Fargo Corporate Trust Services has chimed in with the launch of its Collateral Risk Manager service, a product that allows issuers and investors to conduct in-depth analysis on their structured product portfolios. The goal is to allow users to make more timely and well-informed decisions about their holdings.
Wells Fargo offers the CRM product through its Corporate Trust Services. It provides accurate information on investors' transactions, exhaustive surveillance at the loan level, collateral monitoring and timely specialized reporting. Clients can also carryout default administration/loss mitigation efforts, loss projections, prepayment penalty verification, modification notifications and reporting, and mortgage insurance collection.
The company launched the CRM service in its pilot phase in mid-2006, and continuously refined the product to the point where it now offers client the ability to get very detailed, up-to-date information on all deals in their portfolios.
Specifically, clients can pull up current property values, delinquency stages, when a loan was sent to foreclosure and they can get REO information, said Brian Helfrich, a Wells Fargo vice president and product manager for the CRM product. According to the firm, the forensic review team employed the CRM's fraud detection, full re-underwrite and compliance review functions and uncovered material breaches in more than half the loans it examined to date. Such a review resulted in more than $50 million in total funds recovered, Wells Fargo said.
On-time reporting enables issuers and investors to take swift action on their portfolios, possibly avoiding or minimizing losses - 30 to 45 days ahead of the industry standard, according to a company statement.
"With the current issues in the global credit markets and the mortgage industry's ongoing desire to obtain correct and prompt information to help mitigate losses and maximize portfolio performance, this service comes at an opportune time to serve the needs of our trust clients," said Brian Bartlett, head of Wells Fargo Corporate Trust.
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