Counterparty Due Diligence

Enable customized counterparty reviews for sustained success

As the number and complexity of relationships that mortgage companies have with various counterparties (warehouse lenders, loan investors, and brokers) increases, comprehensive and rigorous oversight is critical to success. Failure to adequately assess and manage counterparty risks can lead to reputational damage, operational risk, and financial loss in the face of growing regulatory scrutiny and increased demand for transparency and accountability.

Mitigate risks to thrive in a changing regulatory landscape

At Sourcepoint, we understand that due diligence and compliance is not a one-size fits all activity.  With over 25 years of experience, we leverage our deep understanding of the regulatory requirements of the lending function to determine the risk to consumers and provided in-depth remediation plans. Our proven risk assessment model is designed to help lenders prepare for regulatory and investor audits across all aspects of the servicing function – from management oversight to policies, procedures and regulatory compliance. Our team comprises originations and servicing experts with extensive experience in innovation, compliance and process improvements.

Sourcepoint’s well-defined and structured due diligence methodology can be broken down into the following:

  • On-site scheduling: Work closely with the client to determine the dates and reporting period for the counterparty.
  • Information gathering: Leverage our proprietary Data Request Workbook to gather required documentation for review – several weeks in advance of the on-site visit.
  • On-site review: Onsite-review, including meeting with key management personnel and review of processes and controls spanning the counterparty’s key actions, participants, deliverables and communication.

The result: timely detection of potential policy and procedural violations to mitigate regulatory risks and eliminate possible harm to consumers.

Stay Ahead

Client spotlight

The client is a leading player in the asset management space that acquires and sells mortgage servicing rights as well as manages multiple large servicing portfolios. It was looking to review sellers prior to transferring the servicing rights with the goal of assessing counter party risks. To this end, it desired to partner with an origination and compliance consultant that could schedule on-site visits at short notice and quickly turnaround the review report.

Sourcepoint leveraged seasoned and experienced consultants with extensive background in origination and compliance to remotely complete the desired review and return the reports within days of the onsite visit.

Our agile services helped the client rapidly transfer servicing rights for superior transaction volume and profitability.

Why Sourcepoint?

25+ years delivering market-leading solutions

Tap into our expertise - We work with the biggest names in the US mortgage market to deliver superior business outcomes

Global centers enabling 24/7 omnichannel experiences

Create a unified experience across channels and services - ranging from mortgage origination and routine servicing to foreclosure and default servicing

Data-driven approach & cutting-edge technology

Stay ahead with next-gen solutions underpinned by Robotic Process Automation, AI, Machine Learning, Advanced Analytics and more

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