RISK MANAGEMENT & GOVERNANCE

Our risk management and governance expertise provides a myriad of regulatory compliance and forensic review services for public and private financial portfolios ranging in value from $50M to $100B. Warbird has performed these services for various agencies, including the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), the Federal Housing Finance Agency (FHFA), the Farm Credit System Insurance Corporation (FCSIC), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal National Mortgage Association (FNMA), among others.

Bank Examinations

Warbird Government is a Prime Contractor with a U.S. Treasury Department sub-agency to provide professional National Bank Examination Services (NBES) and other professional bank examination support services throughout the United States including:

• Examination assistance of selected banks and thrifts
• Evaluating or verifying functions, condition or performance
• Analyzing and assessing examination reports
• Researching the causes and potential impacts of financial and non-financial events and issues
• Researching and analyzing information on emerging and systemic risks in the financial services industry
• Identifying specific weaknesses in bank and thrift processes and recommending corrective action where warranted
• Participating in special projects

Bank Examination Areas of Expertise:

• Credit Analysis: Focus on credit risk management practices and policies, strategic factors, external factors, credit quality factors, classification and loan write-up, and documentation.
• Retail Credit Analysis: Reviews of various areas of retail credit products, portfolios, functional areas or risk management, mortgage and home equity lending, credit card lending or other revolving lending products and other types of direct and indirect retail lending.
• Consumer Protection / Fair Lending / Community Reinvestment Act: Consumer protection laws and their implementing regulations, compliance risk management systems – including board and management oversight, compliance organizational structure and staffing, compliance policies, procedures and processes, compliance training programs and compliance audit functions.
• Bank Secrecy Act (BSA)/Anti-Money Laundering (AML)/Office of Foreign Assets Control (OFAC): Review of laws and regulations related to the FFIEC BSA/AML Examination Manual, including compliance risk management systems, related agency bulletins, advisories and alerts, and Financial Crimes Enforcement Network (FinCEN) and OFAC interpretations and guidance.

Regulatory Compliance

Warbird’s Loss Share compliance review services evaluate various institutional management and resolution activities for complex loans, assets, and securities portfolios. Our team routinely assesses misconduct with borrowers or insiders and measures the guidance provided through underwriting guidelines, internal controls and reporting policies.

We monitor macro-economic and micro-economic conditions that can impact the values of the portfolios and evaluate the “mark to market” accounting and record keeping, impairment and allowance calculations utilized by the institution in managing this unique shared-loss covered portfolio as well as the securities and investments portfolio.

Client Solutions

• Cross-functional diligence review across multiple asset types
• Due diligence review
• Process flow management
• Risk rating and stratification
• Full summary and detail post-review report
• Internal and external cross-functional professional human resources management
• Risk assessment and prioritization of assets
• Valuation with state-of-the-art industry analysis
• Expert technical and systems resources with minimal lead time
• Reduction of risks by identifying assets that fall outside critical contractual representations and warranties
• Risk mitigation through stratification analysis of conforming and non-conforming assets
• Identification of specific risk issues and management consensus
• Commercial and non-commercial reporting requirements and compliance

Due Diligence, Forensic Reviews and Servicing

• Warbird provides due diligence services on portfolios of performing and non-performing loans. The loan review process includes the compilation and review of residential and commercial mortgage loan documents
• Warbird conducts underwriting reviews, credit quality stratification, loss mitigation stratification and the verification of sufficiency of collateral valuations utilizing proprietary work-flow processes to guide the review of the loans and to gauge document sufficiency, underwriting consistency, compliance, servicing sufficiency, risk characteristics and collateral sufficiency
• Warbird processes both cash and non-cash loan transactions and reconcile reported assets of several loan systems for failed institutions
• Our analytical systems provide an assessment of each loan file’s compliance with the various federal, state and local laws, regulations, and statutes governing the origination, selling and servicing of loans