Valuation

Out with the old, in with the new. 

We aim to reshape the third-party valuation process by:

Solving data inefficiencies

Data is often derived from several sources, leading to inconsistent delivery and formatting. Valuation data passes through several hands, leading to ad hoc manipulation and manual analysis, which are subject to human error and can lead to inaccurate modeling. Methodical aims to systematize the delivery of data and track changes over time to root out inaccuracies, thereby providing feedback to data providers to correct errors at their source.

Automating slow processes

Running valuation models can be slow, and this can limit the number of iterations or alternative scenarios run, which in turn can impede accuracy and understanding. Methodical aims to leverage the latest technology, including cloud computing on Amazon Web Services and python code, rather than desktops and Excel, to improve turnaround times and enable sophisticated scenario analysis.

 

Working flexibly & collaboratively

No two whole loan portfolios or securitizations are the same. Portfolio managers who live and breathe their assets day in and day out are often the foremost experts on the idiosyncrasies of their portfolios. Some valuation services can have extremely rigid valuation approaches, and can be reluctant to collaborate and thereby incorporate the best market color. Methodical aims to work together with our clients and incorporate our clients’ expertise in the fine-tuning valuation assumptions.

Maintaining principled independence

Auditors and regulators have increased their scrutiny of self-determined valuations since the financial crisis, leading many more financial market participants to choose to utilize the dispassionate expertise of third-party valuation firms such as Methodical. While Methodical aims to incorporate the best market color, including from our clients, we always maintain independence and a skeptical eye. We rely as much as possible on publicly available data and our deep contacts in the fixed income space to independently gauge performance and market sentiment in an asset’s subsector. Methodical only incorporates client-specific idiosyncrasies to the extent that we believe would be achievable in an arms-length transaction.

Passing savings on to our clients

Speeding up models and automating data integrity checks can significantly speed up the overall valuation process. Methodical aims to pass these time savings on to our clients as cost savings, thus reducing both our clients’ headaches and pocketbook impacts from third-party valuation.

Methodical brings expertise and market knowledge built over decades of involvement in the fixed income markets. Methodical brings years of experience performing third-party valuation and responding quickly to our clients’ internal questions and feedback, audit inquiries, and other needs.

Methodical has expertise in a wide range of fixed-income assets, including:

Valuation – Whole Loans and Derivatives

Secured & Unsecured Consumer Loans

Secured & Unsecured Business Loans

  • Residential Mortgages: RPL/NPL, Non-QM, Non-Prime
  • Manufactured Housing (MH)
  • Reverse Mortgages
  • Marketplace Lending (MPL)
  • Student
  • Credit Cards
  • Auto
  • Medical
  • Point of Sale (POS)
  • Payday
  • Travel
  • PACE
  • Home Improvement
  • Solar
  • Agency MBS: Spec Pools, I0s, Derivatives
  • Legacy RMBS: Prime, Alt-A, Subprime, HELOCS, 2nd Liens
  • New Origination RMBS: Jumbo, Non-QM, Non-Prime
  • Consumer ABS: Student Loans, Credit Cards, Autos, Marketplace, Esoterics
  • Servicing Rights: (MSR, Student Marketplace, etc.)
  • Fix & Flip (F&F)
  • Merchant Cash Advances (MCA)
  • Small Business
  • SBA Loans
  • Commercial Real Estate (CRE)
  • Aircraft
  • Single Family Rental (SFR)
  • Warehouse Lines
  • Franchise
  • Loan Platforms
  • CMBS
  • Esoteric ABS
  • Servicing Rights

Valuation – Whole Loans and Derivatives

Secured & Unsecured Consumer Loans

  • Residential Mortgages: RPL/NPL, Non-QM, Non-Prime
  • Manufactured Housing (MH)
  • Reverse Mortgages
  • Marketplace Lending (MPL)
  • Student
  • Credit Cards
  • Auto
  • Medical
  • Point of Sale (POS)
  • Payday
  • Travel
  • PACE
  • Home Improvement
  • Solar
  • Agency MBS: Spec Pools, I0s, Derivatives
  • Legacy RMBS: Prime, Alt-A, Subprime, HELOCS, 2nd Liens
  • New Origination RMBS: Jumbo, Non-QM, Non-Prime
  • Consumer ABS: Student Loans, Credit Cards, Autos, Marketplace, Esoterics
  • Servicing Rights: (MSR, Student Marketplace, etc.)

Secured & Unsecured Business Loans

  • Fix & Flip (F&F)
  • Merchant Cash Advances (MCA)
  • Small Business
  • SBA Loans
  • Commercial Real Estate (CRE)
  • Aircraft
  • Single Family Rental (SFR)
  • Warehouse Lines
  • Franchise
  • Loan Platforms
  • CMBS
  • Esoteric ABS
  • Servicing Rights

Interested?

 

Contact Us

Methodical
2 Park Avenue
20th Floor
New York, NY 10016
212.485.8910