Parties to a securitized transaction that have any level
of exposure would benefit from Bladestone's surveillance product.
This service is normally priced into the transaction waterfall
and benefits multiple institutions (i.e. investors, trustees,
servicers, rating agencies, guaranty companies and MI providers).
The purpose of the surveillance is to eliminate manageable
risk by setting up a single tier process that addresses the
needs of all parties with different thresholds of exposure.
The focus of the surveillance is on the following areas:
- Transaction Oversight - Monitors deal triggers, reserve
levels and cashflow allocation to assure accurate investor
reporting and timely remittance. Bladestone independently
monitors the master servicer and pool administrator/trustee
for consistency to the transaction covenants.
- Collateral Tracking - Actively monitors a servicer's loss
mitigation and claim processing methods on a specific pool
of assets. Bladestone works in conjunction with the servicer
to report detailed delinquency status, collection efforts
and to project losses when applicable.
- Rep and Warranty Compliance - Bladestone compares loan
characteristics and claim processing procedures to pooling
and servicing agreement requirements at the onset of default
and prior to extensive loss mitigation efforts. Upon discovery
of a breach, Bladestone actively pursues claims on behalf
of third parties.