The recent enactment of the Emergency Economic Stabilization Act of 2008 spawned a new term in our lexicon … Troubled Assets Recovery Program (TARP), which was first used by Treasury Secretary, Henry Paulson, to describe the non-performing loan assets the Treasury intended to acquire from distressed banks. Immediately thereafter, Forsher Holdings created its TROUBLED ASSETS RECOVERY DIVISION and proposed to assist the Treasury Department and its designated Custodian Bank, Bank of New York Mellon, by providing a comprehensive list of services needed to assist participating Primary- and Sub-Asset Manager financial institutions in the acquisition, valuation, loan restructuring, property management, marketing, sales and, if needed, the auction of the troubled assets. To round out the offering, Forsher even proposed to provide credit counseling services to financially challenged homeowners. Essentially, Forsher Holdings created a single-source answer to the troubled asset question. Since that time, the Treasury Department has decided not to acquire the troubled assets directly, but to fund the distressed banks and let them deal with the assets themselves. The same great solution Forsher Holdings proposed to the Treasury Department is now available to all banks with Troubled Assets.
Troubled Asset Recovery Services to Client-Banks
Forsher Holdings provides client-banks a suite of services covering residential and commercial mortgage whole loan assets, ranging from pre-transactional diligence on loans offered for sale, through determination of fundamental loan values and loan acquisition, loan servicing and foreclosure mitigation, to liquidation of physical assets and underlying property. Forsher understands, this portfolio could be substantial in size and therefore works closely with the bank’s management and staff to augment existing bank services. We further understand we may be expected to service loans through market-based or other competitive mechanisms, and that the bank portfolio(s) may be liquidated in-bulk or held until market conditions improve and stabilize.
Forsher assists banks in providing fundamental real estate judgments and loan level analyses to support management, servicing, modifications, restructurings, re-sales, and loss mitigation over time.
Troubled Asset Recovery Services Provided to Client Banks
Pre- and Post Transactional Diligence
Forsher team members currently provide pre- and post-transaction diligence on all its loans and portfolios of loans. Because of the anticipated large influx of loans, in order to provide timely results and avoid clogging the system, Forsher extends the bank’s service capabilities to ensure end-to-end performance.
Whole Loan Transactional Infrastructure
Forsher’s matrix-styled infrastructure provides for processing loans at both the local, regional and national levels, allowing us to optimize control and servicing while maintaining a high degree of responsiveness to customer needs.
Whole Loan Valuation
Upon receipt of the portfolio of troubled assets from the bank, Forsher’s team will segregate the loans by asset class and performance ratings and perform computer analyses to determine the valuations on the properties and/or loans. Particular attention will be placed on current market conditions and reasonable valuation modeling. Our valuation modeling will first be submitted to and reviewed by the bank to ensure consistency and compliance with standards set by the bank. Our electronic data services capabilities and Internet platform will allow smaller financial institutions to enjoy easy access to loan valuation information.
Whole Loan Asset Management
Forsher works closely with the bank to develop and execute loan strategies, consistent with the bank’s policies and guidelines. Forsher can assist the bank by providing integrated asset management for all loans, including acquisition, management, reporting, risk management and asset disposition.
Whole Loan Servicing and Loss Mitigation
The Forsher team possesses substantial capabilities in loan servicing and loss mitigation at both the local and corporate levels. However, due to the potentially large volume of loans in the portfolio and the need for timely loan workouts, we anticipate utilizing subcontractors when necessary to enhance our services.
Surveillance
Forsher currently utilizes the most up-to-date surveillance programs in the industry. Due to the unique and valued relationship with the Treasury as an asset sub-manager, Forsher will be placing a great deal of emphasis on meeting the bank’s standards for surveillance performance.
Physical Asset Management
Forsher has made arrangements with one of top companies in the country, a national real estate management firm, to provide a full spectrum of physical asset management services available to minimize losses and maintain the highest asset values possible.
Cross-cutting Operations and Reporting
Forsher will work closely with the bank to meet or exceed industry and regulatory standards for transparency of all accounting data, maintenance of records and interface with all reporting systems. Forsher will fully cooperate with the bank and its appointed auditors to ensure complete confidence.
