Overview

Pearce & Associates specializes in providing advisory services to mortgage banking creditors and investors. Our services span the lifecycle of creditor/investor decision support from initial due diligence through the liquidation of an organization. Clients have mitigated hundreds of millions in losses by utilizing our services to augment management in distressed situations. Recently, we have been called on to directly reduce loan losses for an Investor using our Loss Mitigation High Impact Team model. Our areas of service are:

  • Operational and Management Assessments

    We provide an insiders view of an organization that attempts to reveal its capacity to deliver on its representations and promises. Areas of emphasis include:

    • Business practices
    • Management strength
    • Process review
    • Operational review
    • Risk assessment
    • Loss exposure

    This process differs from a due diligence process in that its approach is to understand how things are done, and the results achieved, versus analysis of numbers.

  • Interim Management

    This service provides on site consultants to temporarily fill key vacancies. Typically, the individuals placed on site are over qualified for the position in order to enable them to immediately contribute to the organization.

  • Process Augmentation

    This service is used in situations where existing staff/operations are unable to perform all required activities. Portions of key processes can be temporarily outsourced, sourced by remote resources or by consultants placed on site. Process augmentation can be used to address backlogs and/or peak volumes or support an outsourcing transition process.

  • Process Re-Engineering

    Process re-engineering begins with gaining an understanding of the client's short term and long term objectives for a given business process. Once defined, the engagement performs three tracks of analysis; 1) process mapping and evaluation, 2) resource assessment, 3) evaluation of outsourcing alternatives. A recommendation is provided reflecting the optimum solution, given the client's requirements, which is typically a multi-phased approach to reduce transition risk.

  • Creditor Representative

    These engagements typically occur when a warehouse lender or primary investor experiences problems with a company and wishes to have an on site representative coordinate with management. This coordination can be as simple as monthly or weekly reviews with management or as complex as the development of a work out/wind down plan and the on site monitoring of the execution of the plan, or anything in between.

  • Managing Agent

    The Managing Agent approach is used when management has abandoned, or been forced out of, the company and the key creditors have taken a coordinated approach to its liquidation. The managing Agent acts in the role of the CEO to affect the liquidation plan approved by the creditor committee. In the event of a bankruptcy proceeding, the Court will appoint a Receiver, who may in turn appoint a Managing Agent.

  • High Impact Loss Mitigation/Recovery Team

    A LM HIT is frequently needed but seldom created. Due to the overwhelming default activity most, if not all, Servicers are unable to keep up. Investors can see the deterioration in their portfolio's performance but are unable to directly affect it. A LM HIT, paid for by the investor, badged as the Servicer employee (like contractors), and directed by P&A dramatically reduced losses through in creased LM deals. Both Investor and Servicer benefit in this model as the Investor reduces losses and the Servicer supports the Investor at no additional cost. This experience clearly demonstrated the value of a HIT model to mitigate losses.

  • Best of Breed Default Vendor Services Delivery

    There are many vendors out there and insuring that the ones that can really perform are being as this is critical to default performance. P&A has developed performance based relationships with an industry leading outsourcer that provides outstanding results at competitive costs. All too often vendors, products and processes are used because of relationships, inertia and fear of change. In order to confront today's defaults only the best of breed solutions should be employed.

We look forward to being of service to your organization or, in the event you are looking for a challenging career opportunity, to your becoming part of our team!