Expert Analysis of Proposed Trust Settlement Agreement


  • BPA was engaged to provide Trustees with an expert analysis of certain mortgage loan servicing related terms of a proposed Settlement Agreement for over 275 securitization Trusts, including:
    • Investigating potential claims that might be asserted for failure to adequately service loans held by the Trusts
    • Investigating potential benefit which could reasonably be expected from implementation of subservicing and associated provisions of subservicing protocol

Our Role

  • BPA compared the performance of loans in existing trusts to comparable trusts by vintage, loan type and grade & other factors
  • Developed a methodology to estimate servicing loss differentials by severity and applied to all relevant Trusts
  • Established a methodology to estimate dollar benefit of avoided losses using historical migration rates and historical loan severity percentages and applied to the trusts
  • Performed benefit analysis of fees
  • Performed a review of the subservicer handling the loans
  • Performed document exception analysis


  • Through a series of complex analyses, BPA provided parties with a comparison of large bank servicing performance to other servicers and estimated losses associated with the large bank servicing
  • BPA demonstrated the benefit of moving servicing to other servicers, especially at a certain point in time in delinquency
  • BPA support enabled the Trustees to enter into a favorable RMBS Trust Settlement Agreement

For additional information, please contact:

Desiree Daly
at 954-832-3558