Success Stories

Out of Many, One

A leading Commercial Mortgage Backed Securities (CMBS) company called us with a problem: Their underwriters and vendors were using many different cash flow models. The result was a patchwork of processes that was leading to errors, confusion, and incompatible results. With no standardized way to underwrite loans, it was nearly impossible to pull information together into one data tape so that loans could be securitized.

The Challenge

Our client asked us to scrutinize the processes used by their underwriters and vendors and to build a new model that took all of their needs into account. They didn’t want to buy a “store-bought” solution, but rather a proprietary underwriting platform with five separate models for different asset types so they could use the same model for sizing, underwriting, loan review, and the closing process.

Our Solution

Townhouse created one large, cohesive underwriting platform that enabled all our clients’ underwriters and vendors to use the same standard. For consistency, we also wrote instruction manuals.

This platform has eliminated the errors and inconsistencies of their previous patchwork approach. As a result of the integrated platform, valuations for different asset classes and the work of all the underwriters on the team can be easily combined. Plus, we made securitization easier and vastly more accurate, saving our client innumerable man-hours and helping them to more accurately determine loan sizes and terms. The project was such a success that we have been asked to provide ongoing training and support for their loan origination platform.

Highlighted Services

Customized Cash Flow Modeling

• Process Management and Implementation
• Development of Proprietary Technology
• Commercial Underwriting and Securitization Advisory Services

Above and Beyond

Everything in this business is done in a tight timeline. At Townhouse, we are geared for speed, but we are also committed to helping clients find the best solution in any circumstance. So when a large bank came to us in search of personnel to input data and provide an initial size on a loan, we said, “Yes, but let’s see if we can do even better than that.”

The Challenge

Our client had a portfolio composed of more than 300 loans. They needed to input all these properties into individual sizing models so they could aggregate them and use them to size a potential loan. It was a tremendous amount of work, a job that would likely take thousands of hours.

Our Solution

Our client’s initial ask was for us to review about 30 of the loans but instead, we devised a way to look at all of their loans and save them weeks of work in the process. When we discovered that all of the loan information was available digitally, we immediately had a great idea: to build a model with all the data provided that allows for standardized implementation using technology, not manpower. Rather than merely helping our client with the deal at hand, we created a valuable tool that they could use for this deal and others in the future.

With the model we created, the client can analyze a portfolio of loans in seconds, rather than hours, leading to savings on labor. It has also empowered our client to focus more attention on the high-priority work that makes their bids more competitive, and in turn, make them more profitable.

Highlighted Services

• Technology Solutions
• Custom Modeling
• Initial Loan Sizing
• Market Insights
• Tenant Analysis

Always-on Surveillance

In this uncertain market environment where banks are more concerned than ever about borrowers’ ability to pay back their loans, bondholders want continuous surveillance they can rely on. This was especially true for our client – one of the world’s largest managers of fixed income funds.

The Challenge

Our client had a huge pool of assets, as well as a client roster of money management companies, insurers, and pension funds that relied on them. They needed a partner that could provide them with reliable assumptions on occupancy and other rates. The better and more accurate the data, the better they could ascertain the chances of default on a wide scale and accurately gauge pricing on their bonds. In short, they needed to find a way for assumptions to be updated continuously.

Our Solution

Townhouse created a surveillance process to review their historical Commercial Mortgage Backed Securities (CMBS) transactions. It was a large, high-priority project that utilized our firm’s ability to address complex assignments while also providing personal service and team continuity.

As a result of the process we built, our client is able to capitalize on the value of their securitizations. Our ability to constantly update market assumptions enables them to forecast defaults and gauge their pricing more accurately. Our success on the project has led to a unique partnership with our client – one where we continue to manage the process we created and know so well.

Highlighted Service

• Surveillance

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