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Spurs Capital analytics group specializes in valuation of residential whole loans and REO properties. Our loan value assessment is based on all available facts and circumstances. The value we assign will be derived through an in-house proprietary model. The loan values will not only be derived through the use of observable assumptions which are inputs derived principally from or corroborated by observable market data by correlation or other means (market-corroborated assumptions/inputs) but also unobservable model assumptions (default rates, severity rates, real estate market projections, etc.). Along with the observable and unobservable model assumptions the values assigned to the loans will be based on the objective characteristics of the loans (loan amount, original LTV, CLTV, geography etc.). The assumptions taken into account by our pricing methodology are those that are typically used by many active sellers and purchasers of loans and properties in their evaluations of portfolios for sale in the secondary market. The unique characteristics of the secondary loan and REO market often dictate adjustments to parameters over short periods of time.
Subjective factors are also considered in the derivation of market values. We employ sophisticated statistical and simulation methods to account for uncertainty of interest rates, home prices, sociopolitical event risks, levels of supply and demand for loans, interest rate trends, credit availability for particular loans etc. These subjective factors will be reflected in the value assigned to the portfolio.
Portfolio reports will are generated and sorted on multiple fields within the database and working within the asset pooling descriptions to identify specific niches in the portfolio which will enhance value and/or optimize sale proceeds. Assumptions used within the loan asset analysis will be based upon the assumptions and yield requirements currently being applied within the secondary market for similar assets.
A formal Opinion of value will be published based upon the results of the modeling of the loan asset's, and will be based upon a specific valuation date. The published reports will include summary information by asset type and pool identifier. More detailed reports will be provided based upon the assets and loan products contained within a given pool. In addition, sensitivity analysis on specific market factors which may impact the value of the asset will be included. Detailed reports summarizing the assumptions and methodology used to calculate the opinion of value, including a detailed discussion on market and model assumptions utilized will be included within the analysis.