Chief Risk Officer
Boston Portfolio Advisors
600 Corporate Drive, Suite 502
Fort Lauderdale, FL 33334
Desiree Daly, Chief Risk Officer, joined Boston Portfolio Advisors in 2002. She has over 20 years of experience in the financial services industry with significant focus on risk management and monitoring. Ms. Daly’s work has covered a broad range of consulting assignments and she has worked with servicers, bankers, monoline insurers, investors, hedge funds, law firms and other capital markets clients. She has spent considerable time directing rep and warranty repurchase demands, performing servicer surveillance, asset monitoring and conducting due diligence reviews, as well as provided litigation support and expert witness services.
More recently, and with the growth of BPA’s consulting practice, Ms. Daly has focused on fine tuning processes and implementing techniques to mitigate risk and optimize client portfolio performance. She has significant experience with various types of loan portfolios from many sectors including residential mortgage, multifamily and commercial mortgage, autos/motorcycle loans, student loans, unsecured loans, and esoteric assets such as marketplace lending, art finance and aircraft finance.
Prior to her consulting career, Ms. Daly was Vice President of Operations for a mortgage brokerage firm where in addition to overseeing operations and underwriting processes she developed and implemented corporate policies and procedures, compliance training and quality assurance programs. Ms. Daly also served in underwriting and servicing roles at Central Fidelity Bank that later merged with Wachovia Bank.
- Mortgage Loan Repurchase Administration:
- Directed large-scale rep and warranty mortgage loan repurchase efforts and related MI rebuttal and denial investigations. Developed database to track statuses and provide selected data points to support negotiation strategies. Developed tracking techniques to monitor and reconcile servicer repurchase reporting to trustee reporting. These efforts resulted in more than $80mm in recoveries for the client
- Performed decision analyses for a bank using a multivariate statistical model to determine loans that are most likely to be repurchased based on historical submission decisions.
- Loan Servicing Operations and Surveillance:
- Conducted operational due diligence on numerous national mortgage loan, auto loan and student loan servicers and evaluated loan servicing performance to isolate unusual patterns and mitigate servicing risk
- Developed procedures and tested quality and effectiveness of servicing and loss mitigation activities in connection with a mortgage servicing monitorship
- Conducted economic impact analysis based on delays due to faulty servicing using servicing data. Developed a model to calculate losses by measuring timeline delays and calculating incremental loss severity by mapping an HPI to expected performance dates. A loss forecast was also developed to estimate losses remaining on the portfolio.
- Asset Monitoring:
- Direct monitoring activities for assets held in various hedge fund portfolios and provide risk management reporting
- Perform borrowing base monitoring and analysis on various art finance portfolios
- Monitor merchant advance receivables on behalf of investor and reconcile lender transactions
- Expert Witness and Litigation Support:
- Deposed as a witness in a qui tam lawsuit
- Opined on the eligibility of certain mortgage loan transactions for coverage under an Errors and Omissions policy. The work included analysis of a Master Purchase and Sale Agreement (“MPSA”), background on industry standards, and mortgage loan origination review where findings were noted on compliance breaches, negligent underwriting practices and fraud. An expert opinion was rendered on eligibility of the loans in question for delivery to the warehouse lender based on the terms of the MPSA. Ms. Daly prepared an expert report and was deposed as an expert witness. The case settled prior to trial.
- Provided expert litigation defense support and developed a detailed data base containing the alleged student loan underwriting errors as asserted by the plaintiff; compiled composite underwriting guidelines at 5 dates from multiple documents; selected a statistically significant sample, re-underwrote and risk-rated over 1,500 loans; refuted majority of plaintiff’s loan level assertions; identified inconsistencies and flaws in program sponsor’s underwriting guidelines and procedures; evaluated sources of fraud. BPA produced an expert report and a rebuttal report.
Education and Industry Involvement
Ms. Daly earned her B.A. in Business Administration, magna cum laude, from Mary Baldwin University and an M.B.A. in Finance from Nova Southeastern University. She is a member of The Association for Certified Fraud Examiners (ACFE) and is a Certified Fraud Examiner.