Due Diligence on Accounting Methodologies and Models

“SP Group demonstrated ability to ramp up quickly and provide SMEs with relevant subject matter knowledge and experience to meet our requirements in a timely and effective manner”

– Client’s Testimonial

Challenge:  FHFA, the regulator for Government Sponsored Enterprises (GSEs), needed assistance in structuring its examination and evaluation of GSEs (Fannie Mae’s and Freddie Mac’s) accounting policies, model methodologies and valuation techniques for their single family and multifamily loan portfolios, REOS and related securities and investments.

Solution:  SP Group served as a subcontractor to the winning team selected by FHFA to provide the required due diligence services.  SP Group’s personnel were able to provide deep capabilities and knowledge of the housing and mortgage finance industry to our larger prime partner.  We analyzed and compared methodologies utilized by the GSEs, and prepared reports and memos highlighting similarities and differences in their valuation approaches and implications.  In our work, we addressed credit risk, classification and categorization of loans, pricing and valuation of their respective portfolios. 

SP Group brought targeted expertise and industry knowledge to the prime contractor’s team in supporting FHFA’s requirements.