Welcome

Mòrgij recently commenced providing MARQ Services to Pepper Australia Pty Limited (“Pepper”), for its various portfolios of mortgage loans.

Pepper purchased a large portfolio of mortgage loans from GE Capital in 2011. Pepper also has a non-conforming mortgage loan portfolio and loan origination business. MARQ Services are applicable, useful and valuable to many parts of Pepper’s mortgage business.

At the time of the GE purchase, Mòrgij was able to provide Pepper with an alternative means to analyse the mortgage pool and compare to traditional valuation methods. The success and efficiency of this process led Pepper, after the successful purchase, to engage with Mòrgij to provide MARQ Services to the six warehouse facilities funded by three major Australian banks which contain the former GE loans. MARQ Services provide Pepper and its warehouse banks with a secure and easily accessible data base for its warehouse providers, standardised reporting and access to analytic tools. The service ensures an efficient low cost solution to Pepper’s transparency and risk management requirements.

Pepper has, over previous months, conducted non deal roadshows in Europe and the US in preparation for securitizing the purchased mortgage portfolio and its non-conforming book. The one consistent message to Pepper from the international investors in RMBS was the need for transparency, standardised data and reports, plus the ability to analyse the risk of the mortgage loan collateral. Without these services international investors will not be buyers of the RMBS. MARQ Services fills the requirements that Pepper needs to provide to its future domestic and international RMBS investors.

Mòrgij is also working with Pepper to integrate MARQ Services into other origination and servicing functions of Pepper. The first step in a wider integration of MARQ Services is supplying a Pepper calibrated, risk assessment score on each mortgage loan application. This service will be achieved by linking into Pepper’s electronic mortgage application system and supplying the score, real time, on lodgement of the application.

Another useful integration of MARQ Services for Pepper is in their special servicing division. Until now there has been no easy and low cost method to efficiently prioritise the management of borrowers who are in arrears. Simply by providing a Pepper calibrated risk assessment of each borrower in arrears and ranking them by order of risk, the Pepper special servicing team can prioritize their work load to concentrate efforts to those borrowers which carry the greater risk of loss to Pepper.

MARQ Services are provided through www.MARQAnalytics.com.au and are available for mortgage warehouses, RMBS and Covered Bond collateral pools and balance sheet loan management.