|Enterprise Risk Management for the Mortgage Bank
A Unique Vision for Servicing Risk Management, Accounting, and Reporting
QRM's vision for managing and integrating the servicing risk of mortgage banks is unique. Leveraging our core strengths in asset-liability, market and credit risk management, QRM encourages clients to model and assess their risk in conjunction with the entire mortgage banking operation, rather than as a stand-alone process.
Applying our Risk Framework™, QRM assists clients in building processes that integrate data management, calculate servicing valuation with option-adjusted methodologies, use financial forecasting methods based on dynamic portfolio assumptions, and employ turnkey solutions for FAS 156, FAS 133, and tax analysis. The Risk Framework™ brings a holistic balance sheet management approach to a traditionally isolated servicing risk valuation and analysis practice.
It is this powerful and proven vision which makes QRM's Balance Sheet Management for the Mortgage Bank engagement a favorite among mortgage banking CFOs. No longer must they rely on disjointed processes to perform production, balance sheet, and income forecasts, or to create annual budgets. Instead the Risk Framework™ reengineers and integrates clients' practices, providing CFOs with the foundation necessary to make stronger, more profitable decisions.
Trading Quality Analytics, Comprehensive Accounting Procedures, and Complete Process Integration
QRMís Balance Sheet Management for the Mortgage Bank clients have everything they need to manage their risk and optimize their profit. Throughout the engagement, clients work with our consultants to build trading-quality, option-based pricing, and integrated hedge optimization models. Our consultants also assist in integrating these models into the valuation, hedging, and accounting processes.
The result is a streamlined risk practice that ensures consistency from beginning to end, dramatically lowers total risk management costs, and increases risk-adjusted returns.
Risk Management/Trading/Capital Markets Expertise
QRM consultants are industry veterans who specialize in assisting clients to build customized processes based upon leading analytical trading and hedging expertise. QRM clients accurately price, trade, and hedge mortgage servicing, and they build processes capable of using many trading-quality models. Our consultants will work with clients to decide which models will best suit their risk practice.
Financial Planning and Analysis
QRM works with clients to establish advanced balance sheet and market value forecasting processes. Such processes enable clients to model their current servicing assets in conjunction with the complex, dynamic nature of their entire mortgage banking operation. Often QRM clients reengineer their practices to employ sophisticated techniques used by the world's best balance sheet managers. QRM is preferred among Mortgage Banking CFOs who typically must perform production, balance sheet and income forecasts, and annual budgets with disparate systems.
For institutions not planning on moving to the fair market value approach, QRM consultants help build processes that quickly deploy and report a sophisticated FAS 156 calculation. This integrated approach simplifies and automates the entire 156 accounting process.
Multiple Reporting Approaches
One of QRMís greatest strengths is our familiarity with the challenges of reporting. QRM provides substantial reporting expertise and knowledge to clients, enabling them to establish several reporting methods. Following QRMís guidance and advice, clients will configure and customize a reporting platform tailored to their needs.