Scott Roller: Mortgage Vendor News & Views, March 2022

(Scott Roller founded 3W Partners LLC and is Co-Founder of Vendor Surf LLC (www.VendorSurf.com), each dedicated to revolutionizing sourcing of vendors in the mortgage and credit union ecosystems. The companies monitor and report on the service provider market to provide participants what they need to excel in today’s market. He is a frequent contributor to MBA NewsLink.)

In this ongoing article series, we report on mortgage and credit union vendor marketplace vendors, events and trends and share our viewpoints.  Today’s article focuses on two vendors that have spent ample time meticulously building platforms and offerings for the servicing and secondary market conditions we are swiftly migrating toward.    

Mission Global

Industry titan Marcus & Millichap bought Mission Capital in 2020, inclusive of subsidiary Mission Global, which is a technology-forward capital markets firm.  Mission Global has a much-envied reputation for asset sales, diligence and collateral services that allow institutional and governmental clients to achieve liquidity, evaluate risk and optimize portfolio strategy throughout the loan life cycle.

Mission Global is one of the fastest growing third-party review firms in the industry – a single source solution for clients buying, selling, managing and servicing loans.  Clients now have a great option for a full-service review firm, versus farming piece-parts out to multiple vendors.  

Our review of Mission Global revealed enterprise level operational and workflow flexibility to bolster the client experience, allowing them to focus on growing their respective businesses.  This is further complimented by Mission Global’s technology platform, inclusive of:

• Underwriting and Asset Review Database
• Re-underwriting and Decisioning Engine
• Secondary Market Surveillance
• Analytics Platform

The combined companies deliver deep capital markets expertise, market intelligence and extensive research to its clients, making it abundantly clear they do not have a ‘cookie cutter’ mentality. Unique clients require such tailored solutions.

Other notable value propositions clients can expect:

1. Non-QM reporting that exceeds expectation and delivery of Rating Agency ready reports to ensure maximum monthly volume is securitized 
2. Exception curing working directly with clients, or with their counterparty to achieve maximum pull-through 
3. Mission Global is approved by all five of the top Rating Agencies, and actively works multiple rated securitization deals

Dwight Bostic, Managing Director – Mission Global, said, “Being a part of the Marcus & Millichap team is strategic in two major ways – a public company with a strong balance sheet providing exceptional support along all of Mission’s business lines, while allowing Mission to operate with the same philosophy that has guided us for the first 20-years of our success,” 

Our Take – Mission Global

Being a comprehensive third-party review firm is a major benefit, as we have always applauded multi-line vendors.  However, end-to-end solutions backed by Mission Global’s technology and expertise is hard to beat.  The Proof – over 200 clients (most of the premier industry brands) and over $150 Billion in transaction volume.

Another observation – Mission Capital and Mission Global have kept their names, brands and respective identities. To us, it is an affirmation that no big egos at play here. The focus is on delivering exceptional solutions and results. Reputations in the marketplace are stellar. Marcus & Millichap has recognized this and are leaving good things alone.

Caballero Lender Services

With the growing wave of homeowner distress, as borrower forbearance programs are winding down and inflation has hit a 40-year high, we wanted to review some law firm options out there.  Servicers are not expected to hold back on foreclosure referrals to law firms much longer.

Caballero Lender Services is a legal network, and the only one founded by a former director of a national mortgage servicer, private mortgage investor and experienced attorney. 

Founder George Caballero has assembled a highly sought-after network of seasoned attorneys across the country.  This network supports all facets of residential and commercial defaulted loans, helping servicers, lenders, investors and asset managers with foreclosures, evictions, bankruptcy and litigation. 

Other notable value propositions clients can expect:

1. Firms in the network provide a level of personal service not generally found within the ‘big box foreclosure mills’
2. CLS provides services to Private/Hard Money Lenders, which lend to corporate borrowers, knowing and understanding the nuances of foreclosing on non-consumer entities and personal guarantors
3. The nationwide bankruptcy practice is innovative, whereby CLS serves as your single point of contact and the back office is executed by firms licensed within each U.S. jurisdiction 

Borrower forbearance plans and state and federal moratoriums on foreclosure have crippled many vendors, law firms included.  Many closed, while others significantly reduced staff just to survive.  When asked about this turmoil, especially during this global COVID pandemic, Caballero advised that the law firm network has graciously withstood the challenges, though acknowledging the unprecedented environment.  Each of the firms remain financially sound and adequately staffed through these turbulent times. Caballero said, “Rest assured, our firms will handle all foreclosure files with extreme diligence and without delay.”

Our Take – Caballero Lender Services

We like the strength of such a specialty network, with an ability to leverage the best-of-the-best firms across the country.  In our opinion, such a componentized model truly gives CLS the ability to align client needs with law firms best suited for specific requirements.  Further, all network firms are known entities to Caballero, usually having decades-long relationships, so CLS knows their capabilities and reputations.

In Summary

While completely different types of vendors, having nothing in common by way of products and services, Mission Global and Caballero Lender Services have a few common foundations, including:

• Leveraging the strengths of multiple entities to deliver a vast set of specialized solutions, while providing the market with single-source solutions
• Flexible client-facing platforms – touting significant customization options 
• Impeccable reputations and impressive client lists

Tailored solutions always win – when backed up by consistent performance and results.

Thanks for reading.

(Views expressed in this article do not necessarily reflect policy of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes your submissions. Inquiries can be sent to Mike Sorohan, editor, at msorohan@mba.org; or Michael Tucker, editorial manager, at mtucker@mba.org.)