Merger and Acquisition Services

We worked with a mid-sized subprime lender to assess the reasonableness of a shareholder buyout offer. Our assignment included a detailed analysis of the company’s operating results versus peers, the development of financial models forecasting future cash flows and capital requirements and a valuation of the production franchise across a number of different scenarios.

For a bank-owned mortgage lender, we conducted a proactive acquisition search for a high performing retail production company that fit pre-established operating and financial selection criteria. Our search narrowed down to a limited number of candidate sellers after we had approached and qualified companies from an extensive list of possible sellers. We coordinated meetings of the principals, prepared valuations and recommended the transaction structures for each of the finalists and advised our client as to its ultimate selection.

Strategic Planning and Implementation Services

We assisted a privately owned mid-size mortgage banker to develop a strategy and plan to maximize the value of the company’s production franchise in anticipation of a sale in the next three to five years.

We helped an industry vendor to revise its marketing strategy and customer targeting process to focus on the highest potential opportunities. Recommendations included product modifications, electronic delivery capability and development initiatives

Operational Assessment and Process Reengineering Services

For a client whose production volume had quadrupled in a very short time frame, we performed a review of existing post-closing operations and developed a lengthy list of practical recommendations to achieve significant improvements. We were then called upon to participate in the implementation of our recommendations which, when completed, resulted in dramatic improvements in settlements with investors and achieved superior audit results.
We performed a comprehensive operational review and assessment of the mortgage division of a regional bank, including the identification and prioritization of opportunities for specific operational enhancements and improvements aimed at lowering costs and/or improving performance

Performance Measurement Services

We assisted a venture capital firm in establishing loan servicing benchmarks and performed market research on subservicing demand assumptions. STRATMOR also helped the company explore various loans servicing strategic options.
We helped a large mortgage broker to benchmark its loan production data and set measurable goals in connection its plan to convert to a mortgage banking model. Our work included recasting our client’s financial results for 1999, 2000 and 2001 into Peer Group format and identifying performance gaps between the company and its mortgage banking peers. Finally, we identified the changes needed to upgrade company financial reporting structure to industry standards.

Direct Marketing Strategy and Development Services

We assisted a large lender in the design of an end-to-end automated marketing and fulfillment system for retention of in-house streamline refinances. We also managed the day-to-day implementation of the overall streamline retention program during its development and start-up phase
We developed a streamline purchase loan retention marketing and operating plan for a mid-size West Coast lender. The plan included Web-based lead generation tools coupled to highly automated purchase loan origination and fulfillment processes based upon existing GSE streamline purchase loan products.

Special Client Services
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We helped one of the GSE’s to analyze backroom lender costs related to processing, closing and post-closing functions for broker originated loans. By applying sophisticated regression models to three years of Peer Group data, we were able to differentiate unit costs by loan type and function with a high degree of statistical accuracy.

We were asked by the bank parent of a large lender to develop statistically valid models for projecting mortgage origination volume by loan type, e.g., government, conventional, refinance, purchase, etc., over a one year period on a quarterly basis. This request was prompted by adverse Federal Reserve comments on the bank’s then existing forecasting models. The models we developed demonstrated high statistical significance and were both accepted and praised by the Federal Reserve analysts.

A major banking Association asked us to provide financial analysis of the monies due the Association in connection with the termination of a contract involving outsource mortgage origination services to the Association’s members. Our analysis resulted in a substantial settlement for the Association and was instrumental in avoiding costly litigation

We created a partnership concept for a mortgage banking client to increase the utilization of its outstanding secondary marketing capability. Our work involved the design of a prototype partnership, the screening of suitable prospective partners and assistance in negotiations of partnership arrangements. This unique partnership is expected to go into full operation November 2002 following license approval implementation of system interfaces with the various partners.