By: Melissa Peregord, Chief Growth Officer

Earlier this month, I was fortunate enough to attend the 2024 SFVegas Conference in Las Vegas alongside our Divisional President of Due Diligence at Inglet Blair, Jessica Werner, SVP of Compliance Risk and Transaction Management, Tony Peterson and Partner at Inglet Blair, Craig Inglet. Hosted by the Structured Finance Association (SFA), this conference is the largest capital markets conference in the world with industry leaders representing investors, issuers, financial intermediaries, regulators, law firms, accounting firms, technology firms, rating agencies, servicers, and trustees.

As we settle back into our day-to-day, we want to share a few key themes with you that resonated from our meetings and conversations.

1. Data Variations are Impacting Aggregators

We heard this theme the most during our discussions. With data coming from various sources, differences in data collection methodologies and sampling techniques, it is common to see disparities in the aggregated dataset. Ideally, aggregators would like to see data from all sources delivered to them in a uniform and consistent manner in order to perform reviews efficiently and free of error. Because there is no industry standard for much of the data outside the ASF dataset, we heard the aggregators discussing the importance of defining their data preprocessing steps such as cleaning, filtering, and normalization in order to deliver the highest quality dataset.

2. Strong Securitization Market for HELOCs and Second Liens

While some markets like Jumbo are almost non-existent, others remain steady, including HELOCs and Second Liens. This is good news, and a topic we heard excitement around while at the show. By freeing up capital for additional lending while providing investors with exposure to a diversified pool of assets, market outlook remains optimistic. With strong activity, reach out to us to discover how our highly experienced underwriters can assist you with due diligence on these assets.

3. Discussions Surrounding Non-Performing Loans and Reperforming Loans

We heard many discussing the likelihood that Non-Performing Loans (NPLs) and Reperforming Loans (RPLs) will see an uptick in the year ahead. Reasons for this include:

  • Residential real estate lending market changes are resulting in an increase in lenient origination practices
  • Consumer interest rate increases will continue to strain borrowers’ ability to service their debts

A combination of these market conditions can contribute to a rise in NPLs, highlighting the importance of robust risk management practices and proactive measures by financial institutions to mitigate credit risk during challenging economic environments. Contact us to learn how we can help protect your asset quality, profitability, and regulatory compliance standards.

SFVegas is just the start of Spring tradeshow season for QC Ally and Inglet Blair. Expect to see us at several industry shows the first half of the year, including:

Whether you want to meet at one of these upcoming shows or simply want to jump on a phone call to discuss, we’re here to assist. Contact us today:

Contact Us