Mortgage / Home Equity
Since the 2006 economic downturn, the mortgage business has been heavily regulated. At PAG, we have been at the forefront of Risk Management navigating through consent orders, depreciating mortgage values, increasing foreclosure inventories, FFIEC compliance, differing state specific regulations, with varying loan performance through different geographic areas. We understand and practice sound origination strategies based on solid lending guidelines. We have practical experience with HAMP and FHA loans. We also know when to scale back. For example, PAG has made recommendations not to lend in some states due to strict legislation making it difficult to book profitable paper.
On the Home Equity product, we have looked at existing account performance where we are the first lien and used a combination of existing credit bureau and internal scorecards where applicable. PAG has applied economic indexes like HPI and Case Shiller in the credit underwriting process and worked with 3rd party vendors like Moody’s to make sure that we are using the most recent property value to ensure LTV ratios are not overly aggressive.
No other industry is as heavily regulated as the mortgage business in terms of compliance and audit. We have successfully navigated these waters and minimized fines and avoided media attention on practices. To name a few, PAG has witnessed the S/T and L/T portfolio impact of heavy adjustment of terms / deferment use and worked to improve portfolio curing guidelines to stave off regulatory scrutiny. We have successfully managed through audits with in depth looks at repossession legal notifications and we have experience with showing that businesses are compliant in their foreclosure processes.