Denver-based firm among first to pass new certification process to perform due diligence on publicly traded RMBS; program aims to strengthen ratings used by investors
DENVER, Colo. (Sept. 28, 2009) - Allonhill, a Denver-based national mortgage due diligence and credit risk management firm, announced today it is among the first firms in the country to win approval from Standard & Poor's Rating Service to perform third-party reviews on residential mortgage-backed securities (RMBS).
The certification means Allonhill is an approved contractor to perform due diligence on publicly traded RMBS. The program was designed by S&P to help companies identify third-party review firms that meet the highest standards of accuracy, accountability, transparency and independence.
The months-long review by S&P explored all aspects of Allonhill's business, including experience, systems, infrastructure and policies.
"This is an important milestone and validation for our company that we are doing the right things to both produce superb results for our clients and fix problems that contributed to the mortgage meltdown," said company founder and CEO Sue Allon. "I applaud S&P's recognition of the importance of high-quality third-party reviews in restoring confidence in our industry."
S&P is one of three main agencies which assign ratings to bonds and securities that investors use in making buying decisions. For example, a bond carrying a AAA rating is considered a safer investment than a bond carrying a B rating. Those ratings have come under scrutiny in the wake of the mortgage collapse and ensuing economic slowdown, as mortgages within even the highest-rated classes of securities defaulted at high rates and went into foreclosure.
S&P announced more stringent policies around its ratings in late 2008, including a new assessment for third-party review firms that perform due diligence on securities.
Allonhill's proprietary due diligence and credit risk management systems are considered the industry's gold standard because of their superior scalability, customization, checks and balances, and real-time access and reporting. A recent load test by Web Performance, which performs tests for Ebay.com and Amazon.com, verified that Allonhill's systems can handle the review of 1 million loans by 300 simultaneous users spread across the country with no impact on performance.
Allonhill has seen impressive growth since its founding in 2008, doubling the number of full-time employees in the past five months and tripling its workforce in the past year. The company works with some of the country's largest and most respected investment banks and other private investors as well as government agencies.
"We set out to reinvent the mortgage industry with the best people, systems and approach in the market,"Allon said. "The approval by S&P is one more indication that we're achieving just that."
About Allonhill
Allonhill (www.allonhill.com), based in Denver, is a leading financial services firm that provides transparent, efficient and analytical mortgage due diligence and credit risk management to help clients understand, manage and reduce risk through informed loan and bond buying decisions. A certified woman-owned business, Allonhill brings more than 50 years of industry experience to clients that include hedge funds, mutual funds, private investors, government agencies, ratings agencies and mortgage originators and service providers.
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Media Contact:
Russ Rizzo
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