Investments in mortgage companies carry unique regulatory, financial, operational, and cultural risks that generic commercial and financial diligence rarely surfaces. These risks — and the sequencing required to address them — frequently determine whether an investment meets or misses its return targets.
Quality of Earnings (QoE) reports validate historical results, but they don’t tell you whether those earnings are durable, scalable, or transferable through the next rate cycle. STRATMOR provides the mortgage-specific underwriting and industry intelligence private equity firms need to protect downside risk, validate investment theses, and improve IRR — before, during, and after a transaction.
We engage pre- or post-LOI, with flexible options for engagement length, to surface risks and opportunities beyond the financials. We test investment theses with proprietary mortgage industry data, evaluate business model sustainability and assumptions, and identify regulatory, licensing, and approval considerations with clear mitigation paths. Using proprietary industry data, we can benchmark the target company’s technology stack against top-rated platforms and identify opportunities for optimization, including the implementation of AI tools.
We provide integration and onboarding advisory, and support sequenced operating and strategic improvements that protect production volume while driving margin expansion through execution, compensation, and operating-model optimization. We also reinforce the leadership alignment and retention strategies critical to preserving value post-transaction.
We provide quarterly valuations using our proprietary methodology, revalidating key model assumptions and benchmarking portfolio company performance against industry and peer data on an ongoing basis.
We position the business for buyer scrutiny by pressure-testing exit narratives and financial assumptions, and proactively resolving diligence friction points to improve certainty, timing, and multiple realization.
STRATMOR is a mortgage-only boutique consulting firm with more than 40 years of experience across multiple rate, volume, and regulatory cycles. We pair that focus with proprietary peer, transaction, and benchmarking data — representing roughly half the industry, more than one million consumer surveys, and performance insights across 30+ leading technology systems — to rigorously test assumptions and ground strategy in facts. Our team includes seasoned consultants and former C-level mortgage banking executives who understand what disrupts production and how to avoid it. With deep M&A and post-close integration experience, including some of the industry’s largest transactions, and more than 500 top lenders served in the past five years, we bring perspective that is both broad and battle-tested.
STRATMOR enhances traditional QoE and commercial diligence by underwriting the mortgage-specific risks and value drivers that determine downside protection, value creation, and exit outcomes.
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