Portfolio Acquisition Case Study
310 loans with an outstanding balance of $440 million; mix of performing and non-performing bank loans; collateral included churches, land, residential lots, industrial, multi-family, motels, commercial and retail uses; average loan size $1.4 million.
Client to submit a Best and Final bid for the entire pool within 15 days.
▪Exceder Scope of Work:
- Identified a sample set of 98 loans that covered 90% of the outstanding balance. Sample set included 92% of the NPL balance and 56% of the performing loan balance. Sample also reflected property type and geographic concentrations.
- Created an inventory of the sample set loan files for critical documents and correspondence.
- Confirmed loan business terms with loan documents.
- Reviewed and analyzed all available property level and Borrower/Guarantor documents.
- Assembled market reports and current sale and lease comparable data from various subscription databases.
- Completed market calls to brokers for the top 25 loans in the pool.
- Underwrote As Is, Stabilized and Mark to Market pro-forma cash flows as necessary.
- Concluded to an underwritten LTV and DSCR based on cash flow, market data and loan terms.
- Projected loan resolution (Maturity Payoff, DPO, Deed in lieu, foreclosure), estimated date of resolution and range of potential loss.
- Sample set conclusions presented to client on a rolling basis starting Day 5.
- Sample set underwriting and analysis completed Day 10.
- Applied results of Sample Set underwriting to portfolio.