As the Wall Street investment banking community developed and perfected mortgage securitization, we migrated towards a specialization in mortgage industry merger and acquisition ("M&A") transactions. Over the next eight years, we participated in dozens of industry transactions, primarily involving proactive acquisition searches on behalf of buyers. Our firm was instrumental in a large number of the transactions that consolidated many independent mortgage bankers into today's top 25 seller/servicers.

In the early 90's, as the pool of available well-managed independents diminished, STRATMOR added strategic and operational consulting to its services. As a result of our successful transaction experience with a broad client base, we had established a solid reputation for industry knowledge, superior quantitative skills and integrity/accountability. Thus, our initial strategic consulting engagements were often with M&A clients who wished to leverage STRATMOR's in-depth understanding of the specific businesses acquired.

Since then, our consulting practice has expanded rapidly and has evolved to become the major component of our overall business. This expansion was made possible through the addition of principals who broadened our base of mortgage banking and consulting experience. Therefore, today, our expanded capabilities in subprime lending, financial analysis and measurement and direct marketing- afford our clients new opportunities to grow their relationship with us.

An important advance in our development took place in1998 when we teamed-up with the Mortgage Banker's Association to develop and implement the Peer Group Roundtables performance benchmarking program. This industry-leading program provides participating firms --- which today includes most of the industry's top lenders ---- comprehensive performance data, performance analysis and peer group discussion meetings on a semi-annual basis.

STRATMOR's exclusive access to Peer Group data has greatly enhanced our ability to provide expert strategic, operational and financial consulting services to our clients.

Our Competitive Advantages


STRATMOR's consulting strengths are derived from a unique combination of factors that differentiates our capabilities from other advisory service providers to the mortgage industry:

• Mortgage industry strategic perspective acquired through over 100 assignments with a range of clients ranging from mega seller/servicers to small origination-only lenders and service providers.
• Ability to support the client implementation of strategic initiatives from the initial design phase through project management, process design and performance evaluation.
• Superb financial and operational analytical skills learned hands-on, as true mortgage bankers.
• In-depth familiarity with the entire mortgage process, from marketing, through production and closing, post-production, investor delivery, securitization, investor reporting and servicing - from the smallest to the largest in the business.
• Deep understanding of Information Technology and systems workflow gained from conducting lender production and servicing operational reviews.
• Industry-leading expertise in customer retention and related direct marketing programs that emphasize streamlined processes and investor delivery.
• Historical and analytical fluency with the industry's most comprehensive and timely performance database as a partner in the MBA/STRATMOR Peer Group Roundtables.
• Sponsorship of Lenders One, a mortgage cooperative formed to aggregate the production of small originators and leverage their negotiating strength with investors and vendors.
• Strategic alignment with key service providers, including CCPace, Domania.com, and WebSurveyor to provide cutting edge applications and support where appropriate.
• Access to key mortgage industry makers - the GSEs, software providers, best legal minds, major service providers, third party resources - who provide "as- needed" input to questions, "what if" scenarios, and requests for insight.

In competitive consulting opportunities, we are often selected because of our high tech/low overhead culture. We offer an attractive alternative to the larger consulting organizations that must burden client assignments with substantial support staff and infrastructure overhead costs. By design, we employ no analysts or associate consultants. All assignments are performed by our experienced principals.

STRATMOR is positioned to make a clear value proposition to a prospective client: Competitive fees combined with exceptional mortgage experience and consulting skills.