Case Studies

Following is a selection of case studies from recent transactions.

Primary servicing solution for $1.6 billion commercial portfolio

Following a competitive tender process in late 2009, AMAL was appointed primary servicer of the Challenger Howard Mortgage Fund.

Due to time constraints relating to the relationship with the existing service provider, an integration timetable of just eight weeks, including the Christmas period, was developed and delivered.

The servicing model involves AMAL ‘hosting’ Challenger’s servicing platform while providing Challenger credit and management teams with on-line access to data and reports.

AMAL undertakes all servicing functions including customer communications and arrears up to 30 days.

Standby servicing and special servicing solution for New Zealand auto portfolio

As part of a restructure of its warehouse facility, this broad-based financial services organisation was required to replace the existing standby servicer and special servicer (the Trustee) with an organisation with demonstrable servicing capability.

Following extensive due diligence on the 16,000 asset portfolio and discussions with all key service providers to the business (systems, banking, disaster recovery etc), AMAL developed a tailored ‘step-in’ solution, with a Servicer Transition Plan that was acceptable to all stakeholders.

Primary servicing solution for a $A900 million non-performing commercial portfolio

Following their successful challenge to replace former manager, City Pacific, Balmain Trilogy appointed AMAL as primary servicer of the $900 million Pacific First Mortgage Fund.

The portfolio comprises predominantly underperforming loans secured by a range of construction projects at various stages of completion, as well as vacant land.

While maintaining much of the workout role itself, Balmain Trilogy is leveraging off the extensive commercial credit capabilities of AMAL’s Credit Services team. Balmain Trilogy is also relying on AMAL’s servicing platform throughout the workout process for online access to data and documents, analysis and stakeholder reporting.

During the servicer transition a crucial role played by AMAL was to ‘reconstruct’ the loans from inception (based on limited spreadsheets and hardcopy statements) to ensure the accuracy of portfolio data and to maximise the return to unitholders.

Standby master and special servicing solution for an equipment lease financier in New Zealand

As part of new terms with its warehouse funder, this equipment lease financier in New Zealand was required to select and appoint a suitable standby primary and special servicer.

The size of the portfolio (over 16,000 receivables) and the intricacies of the product and systems platform meant that AMAL had to develop a tailored solution that could deliver a 24 hour step-in capability.

AMAL was able to develop and document a Servicer Transition Plan that satisfied the requirements of both the financier and their funder and the new facility has now been finalised.

Primary servicing solution for RMBS program following a Servicer Transfer Event

Following a Servicer Transfer Event, AMAL was asked by a major Australian bank to replace the existing servicer (who was also the originator) of a portfolio of residential loans.

The integration proved to be particularly difficult with the existing servicer acting in a hostile manner and refusing to provide portfolio data.

After beginning legal proceedings, limited data was provided and AMAL was able to successfully reconstruct the portfolio with incomplete data and loan files.

The portfolio is now being serviced efficiently and accurately and has minimal arrears.

Primary servicing solution for sub-prime residential portfolio in New Zealand

The integration of this sub-prime residential mortgage fund was from an underperforming third-party servicer and involved a significant data migration.

While the data migration was completed relatively efficiently, AMAL’s subsequent data cleansing process uncovered a large number of incorrect arrears balances in the source data and, therefore, the portfolio had a significantly higher level of arrears than had been previously reported.

As part of a dynamic transition plan, AMAL was able to dedicate immediate resources to the collections area and rectify many of the previously unreported arrears. The portfolio is now being progressively rundown on behalf of the lender.

Equipment lease portfolio in Sydney

This was one of the most challenging integrations AMAL has undertaken and involved a leasebook of over 12,500 receivables, of which over 4,500 were in serious arrears.

In this case the finance company, Elderslie Finance and its related entities, had been in receivership for nine months, operating with only a skeleton staff. AMAL was required to deal with the receiver, trustee and multiple funders.

Following success in a competitive tender process AMAL was able to interview and select key staff, recruit an experienced new collections team, negotiate with systems providers and manage the relocation of the business to AMAL’s premises, all completed within a four week period.

After six months of working on the portfolio, AMAL was able to stabilise the servicing platform, undertake extensive reconciliations and adjustments, restructure the funder payment process to improve transparency and efficiency and reduce the arrears by two-thirds.