Market Landscape

Industry Challenges

Primatics Solutions

Consulting Focus Areas

Loans/Mortgage Servicing Assets

Credit Risk Analytics and Active Portfolio Management

Pricing/Valuation (Fair Value Services)

Compliance and Disclosures

Mergers and Acquisitions

Loans/Mortgage Servicing Assets and Securitization Accounting

With the introduction of new accounting standards, such as FAS 159, as well as a string of high profile financial re-statements, primarily relating to FAS 91, FAS 133, and FAS 140 / FIN 46(r), oversight of financial institutions has become increasingly microscopic.

Primatics Consulting delivers the expertise and insight that can help you address the key challenges your business faces as you seek compliance.

Challenge number 1: Performing FAS 91 level yield (prospective, retrospective, and contractual) for products with complex cash flows, such as Option ARMs, and both major and minor modifications in residential and commercial loans.

A dependency on proving the immateriality of non-level yield methodologies to auditors can become material for high growth firms, and could result in material differences or re-statement of financial earnings.

Your Primatics Consulting experts will perform gap analyses on “as-is” state vs. “to-be” state, as defined by proper accounting policies in accordance with GAAP and management information required to run the business.

Challenge number 2: Conducting proper impairment analysis in accordance with FAS 114.

An inaccurate impairment analysis can increase the probability of a material financial misstatement. We’ll review current policy based on historical success of predicting value deterioration, and develop new procedures that address identified gaps and implement solutions in people, process, technology, and data.

Challenge number 3: Understanding proper accounting treatment of securitizations, specifically sales vs. financing under FAS 140, and consolidation vs. derecognition under FIN 46(r).

Improper treatment of securitizations can result in a misrepresentation of your financial position. We’ll work with your policy group to define a reliable “checklist” approach to implement FAS 140 and FIN 46(r) requirements. And, we’ll implement procedures to evaluate both current and future deals.

In addition, Primatics Consulting will implement technologies to automate procedures and produce reliable exception reporting.

Challenge number 4: Achieving timeliness and accuracy in data feeding systems.

Elongated close cycles bring with them a higher risk of incompleteness and inaccuracies.

We’ll model “as-is” data flow from initiation to recordation, and identify your “to-be” state based on best practices. From there, we’ll implement processes and technologies to address gaps in your current flow.