Valuation Services

Valuation Services

Ferncliff’s team of mortgage specialists offers mortgage market participants independent valuation services for mortgage portfolios and mortgage securities. In today's environment of increased scrutiny of corporate governance, Ferncliff offers valuable assistance to companies seeking to an independent assessment of the value of the mortgage assets they own. In addition, we assist clients considering the purchase of mortgage assets to evaluate the appropriate price to bid to the seller. Our clients have included government agencies, mortgage lenders, portfolio lenders, mortgage warehouse lenders and mergers and acquisitions advisors.

The Ferncliff acquisition and advisory group has valued over $200 billion of loan assets and sold billions in loan assets since 1989. The team’s market coverage and experience can provide clients with information in determining the value for the loan portfolios of all asset classes and provide for a thorough understanding of the local market and asset specific characteristics that impact performance. Whole loan portfolio valuations range the spectrum of mortgage products including residential fixed and ARMs, conventional conforming, FHA/VA, jumbos, Alt-A, sub-prime, home equity lines of credit, scratch and dent, sub- and non-performing and manufactured housing. Other mortgage products valued include subordinate and residual securities, commercial loans, consumer loans and credit card portfolios.

The new FASB Accounting Standard Update means your financial institution clients must start to look forward when estimating losses in loan portfolios and to replace their existing incurred loss approach with a Current Expected Credit Loss (CECL) methodology. Although the new methodology is required for SEC-governed financial institutions for fiscal years after December 15, 2019 (and one year later for non-SEC governed financial institutions) your client either has, or will soon be looking to you for guidance.

Ferncliff Investments, and its partners, are here to help your clients by providing nonattest services including assisting management with the creation of a CECL model and implementation plan, identifying key drivers of expected loss, and establishing a plan to bridge potential data gaps. We’ve provided estimates of current expected credit loss to our clients since 2009. Our veteran credit advisory specialists have the experience your clients need to assist management with these important decisions.

Understanding their options and potential outcomes today will help your clients to not only address CECL requirements, but also provide actionable intelligence affecting provisioning, loan terms, portfolio management, and capital planning.  We help re-orient your view of loss by creating defensible CECL modeled output incorporating estimates of Probability of Default and Loss Given Default.