Proven Performance

Our Government Practice assists Regulatory Agencies and GSEs in advancing the value of their objectives by preserving capital, enhancing governance processes, and overseeing and enforcing regulatory paradigms. Our residential mortgage advisory services are distinct in yet another very important way – our capabilities have been primarily developed in support of government agencies dealing with a range of mortgage issues over the past 5 years. As a result, we believe we are best viewed as part of the solution and not part of the problem. This means less potential conflicts – – and fewer surprises – for your institution.

Asset Forfeiture, Money Laundering, and D&O Liability (Past and Pending Engagements)

  • Forensic Accounting and Financial Investigative support of criminal matters involving the laundering of proceeds of illicit drug sales, as well as an assessment of the effectiveness of a Financial Institution’s Anti-Money Laundering/Bank Secrecy Act (AML/BSA) Compliance Program
  • Currently in discussions to assist in investigations of criminal claims related to failed financial institutions where criminal liability may exist for certain related parties or affiliates

Proven Performance

Our Government Practice assists Regulatory Agencies and GSEs in advancing the value of their objectives by preserving capital, enhancing governance processes, and overseeing and enforcing regulatory paradigms. Our residential mortgage advisory services are distinct in yet another very important way – our capabilities have been primarily developed in support of government agencies dealing with a range of mortgage issues over the past 5 years. As a result, we believe we are best viewed as part of the solution and not part of the problem. This means less potential conflicts – – and fewer surprises – for your institution.

Accounting Advisory and Governance (2011 Engagement)

  • Provided services for the largest U.S. teachers’ retirement fund to enhance the current procedures and processes of its Investment Accounting as it relates to accounting for the client’s investment portfolio in the Comprehensive Annual Financial Report (CAFR).
  • Warbird professionals accomplished this through the assessment of the current procedures and processes as they relate to the investment portfolio; defining the public and private sector best practices for accounting in investment transactions, asset values, revenue, and reporting; analyzing the gaps between the current environment; and appropriate best practices in designing, implementing, and managing the client’s best practices model through to the turnover of all processes and procedures to the client’s investment accounting team

Proven Performance

Our Government Practice assists Regulatory Agencies and GSEs in advancing the value of their objectives by preserving capital, enhancing governance processes, and overseeing and enforcing regulatory paradigms. Our residential mortgage advisory services are distinct in yet another very important way – our capabilities have been primarily developed in support of government agencies dealing with a range of mortgage issues over the past 5 years. As a result, we believe we are best viewed as part of the solution and not part of the problem. This means less potential conflicts – – and fewer surprises – for your institution.

Receivership Assistance Contractor (Current Engagement)

  • Deploy large teams of banking experts (approximately 1,000 contractors deployed since 2009) to manage the receivership process on behalf of the FDIC for failed financial institutions
  • To date, Warbird has managed the receivership of ~50 financial institutions
  • Services provided included the full range of closing support functions, including: Facilities, Asset Management and Servicing, Claims, Investigations, Settlement, Employee Benefit Plans, Financial Closing Process, Personnel Administration, Franchise Marketing, and Branch Marketing

Loss Share Compliance (Current Engagement)

  • Deploy teams of loss share experts to review compliance with loss share agreements on behalf of the FDIC for acquiring institutions, which have acquired the assets of failed financial institutions under Loss Share Agreements
  • Currently, oversee the compliance of 28 loss share banks, which comprise a total of 55 Task Orders, to review SF and NSF loan portfolios; and 1 investment LLC with Loss Share Assets
  • Services encompass oversight, surveillance, and accounting and credit compliance monitoring of Loss Share Agreements for Single Family and Non-Single Family loss share loans, including whole loans and securities backed by SF and Non-SF loans. Under these contracts, certain assets of a failed bank(s) are identified as Loss Share Assets and passed to an acquiring bank(s) under Purchase and Assumption Agreements subject to Loss Share coverage

Due Diligence for Single Family Real Estate (Current Engagement)

  • Provide due diligence services including data capture, aggregation and analysis, documentation file review, underwriting review, and regulatory compliance review
  • Additional services include: credit quality stratification, loss mitigation stratification, review sufficiency of collateral valuations, ARM audit & repair, and document payment histories

Proven Performance

Our Government Practice assists Regulatory Agencies and GSEs in advancing the value of their objectives by preserving capital, enhancing governance processes, and overseeing and enforcing regulatory paradigms. Our residential mortgage advisory services are distinct in yet another very important way – our capabilities have been primarily developed in support of government agencies dealing with a range of mortgage issues over the past 5 years. As a result, we believe we are best viewed as part of the solution and not part of the problem. This means less potential conflicts – – and fewer surprises – for your institution.

Representative Engagements

Our Results

2005 (Past Engagement)

  • Deployed 40 consultants and managed a PMO to support a complex financial restatement, as well as servicer loan review
  • Managed multiple additional work streams including supporting the real estate owned (REO) team with ongoing loan loss review personnel, as well as the Low Income Housing Tax Credit program and mortgage-backed securities groups

Non-Performing Loan Review (Current Engagement)

  • Forensic Loan Due Diligence of FNMA Non-Performing Loan Portfolio – Identify mortgage originator breaches of representations/warranties that supports issuing the originator a Loan Repurchase Letter
  • Operating scaled organization that includes experienced Mortgage Processors, Underwriters, Desk Appraisers, and Quality Control/Assurance experts

Performing Loan Review (Current Engagement)

  • Expanding FNMA Forensic Loan Due Diligence Project to include the FNMA Performing Loan Portfolio
  • Warbird is currently testing data transmission capabilities with FNMA. The data testing and technology platform development is targeted for completion in Q3 2012. The implementation of the performing loan review in the production environment is expected in Q4 2012

Executive Summary

Prior to the financial markets crisis, Regulatory Agencies and Consulting firms, especially the big 4, provided advice on deals / transactions across the Banks, especially for M&A activity. The regulators were the capital experts on these transactions, providing and some continue to provide Accounting, Regulatory, and Tax consulting in accordance with Basel I and II.

Current Environment – Treasury Solutions Network Opportunity

After the financial markets crisis, and with the introduction of the Dodd Frank Act, Regulatory Agencies are no longer allowed to advise traders, the Treasurer, the CFOs, and any others involved with M&A and capital raising, because the new rules mandate ‘independent advice.’ Traditional consulting firms such as the big 4 cannot longer provide both advice and audit services at the same time. Doing so violates the provisions of the Act and compromises the interests of the financial institution and its investors.

As such there is a need of the right form of consulting in the area of Treasury, to provide an independent assessment of how transactions are structured and executed. Components include legal and tax consulting, financing collateral, operational controls, and litigation support (expert witness). In today’s environment, these Banks and Broker Dealers have to go to the hedge funds who will take the exposure for the various trades. Funds, Fund to Funds, and Private Equity firms will bucket the exposure, exchange notional, and put on the required hedges.

Being able to justify the valuation for those assets falls within the Treasurer’s domain, and require a uniform treatment from an accounting, tax, and regulatory perspective. It is the Treasurer’s job to allocate the capital to the firm for the various trades. He is she ensures that the firm has the right governance piece with the right processes and procedures. Without the decision of the Treasurer, the firm cannot process any trades or dispose funds to the clients. In addition, the Treasurer is the key advisor to the CFO to ensure that all areas of the firm operate under proper governance with the right controls in place. Areas include Capital Markets, Mortgages, Personal Loans, Cash Management, Securities, Investments & Liquidity, M&A, Retail Activity, Legal, Risk Management, Technology, Operations, Audit & Compliance, and Network Management. Network Management in recent days has taken the role of being the ‘governance gate keeper’ for the firm’s activity across all transactions initiated in the US and overseas.

Competition

There are currently no competitors in this space. However, the recent disciplinary actions from the Fed and the SEC against Banks for mishandling foreclosures and violating compliance and antimony laundering rules, has put enormous pressure on these firms and their current Auditors to follow the rules and draw the line. Recent interviews with 12 Treasurers from Banks and from recently observing the aggressive hiring for FDIC and other Federal Government Agencies talent by Promontory and FTI Consulting, conclude that the need for ‘Regulatory Consulting’ is still fresh, but not for long.

Initiative Structure

The Treasurer Solutions Network will require the following structure:

  • Treasury Solutions Captain / Head of Treasury Practice to lead the initiative
  • The hiring of the right talent with Treasury background and solid experience with the latest development in Compliance, Regulation, Accounting, and Tax, surrounding Banks, Funds, Broker Dealers, Exchanges, Insurance, and Private Equity firms. These folks could potentially come from the recent interviews I conducted in NYC with Treasurers and Compliance Officers available for work on a part time of full time basis.
  • Experience in Cash Management, Payments, Investments & Liquidity, Capital Markets, Legal and Compliance is a must.
  • As the opportunity for consulting services grows, additional resources could potentially come from our On-Demand model or through market contacts.
  • A robust and carefully designed marketing campaign with related to this initiative collateral materials needs to be distributed to the Treasurers of big Commercial Banks, Investment Banks, Mid-Size Banks, Small Banks, Foreign Banks (subs) operating in the US, FDIC Acquiring Institutions, Funds, Fund to Funds (Prime Broker), Private Equity Firms, Insurance Firms, Mortgage Servicers, Local, State, and the Federal Government, State Pension plans in the US and Canada. Law firms are also of high interest.
  • A partnership with large Commercial Banks, Investment Banks, or reputable Private Equity firms will allow for our Treasury Solutions Network to be advertised and put in use quickly to the clients of these firms, especially in the area of Funds, Mid-Size Banks, Smaller Banks, and the Public Sector such as State Municipalities, Universities and Hospitals.

Initiative Market Rollout

  • Depends on collateral materials readiness, assuming right knowledge and expertise within our firm to develop.
  • Depends on our ability to obtain accurate contact information per Industry (Banking, Insurance, other) and per type of firm (Small Bank, Large MM/Commercial Bank, Funds, Mortgage Servicer, State Municipality, Government entity, other)
  • Requires creative web design, informative webinars, relationship building and proper communication to attract attention at the Treasurer level or those the Treasurer recommends that we reach out to.
  • Requires automated tracking and reporting for contacts information, type of correspondence tracking, follow ups.
  • Requires sufficient budget for marketing materials and web design development, junior staff to assist the Director(s) assigned to this initiative, T&E.
  • Ability to build relationships and connect with the new prospects at the Treasurer level, having knowledge and experience what the Treasurer deals with on a daily basis and the decisions he or she has to make is a must.

Revenue Forecast

  • Tier Revenue per market segment (Banks, Funds, Insurance, Government, other).
  • Requires Account Plans and Industry Segmentation
  • Requires Research and Analysis and knowledge of Competition to build the wallet per Industry and per client.