Secondary Market Advisory Service

BancCap recognizes that selling whole loans in today's sub-prime secondary market requires a significant amount of time, experience and skill. Often times, smaller sub-prime originators do not have the internal expertise to manage that process effectively, and consequently do not receive maximum value for the product they originate. Being a captive originator to one investor can also be a problem as it limits your product menu and weakens your leverage when selling the loan. In other cases, this function is managed by owners or CEOs, who could be spending their time more effectively dealing with other aspects of the business.

To address this issue, BancCap offers a Secondary Market Advisory Service targeted towards smaller originators who want to maximize the value of the loans they originate. Working with your internal staff, our managers will assist you in target marketing your loans to specific investors who pay up for certain products, and will give you leverage with some investors you may not be able to deal with otherwise. Because we deal in volume, we can often command whole loan prices well in excess of what you may normally be receiving. Our Advisory Service includes:

  • Assisting you in expanding your product menu to include products acceptable to new investors.
  • Identifying ways to improve your product menu to maximize sale execution.
  • Expanding the number of investors you can sell to without requiring you to become an approved seller with each one.
  • Segmenting loan pools to find the best investor match.
  • Running your loans through our proprietary pricing model prior to the sale to provide you with a benchmark to which you can compare bids.
  • Assisting in the negotiation of purchase and sale contracts.
  • Participating in the due diligence process and contesting loans rejected or repriced by investors.
  • Finding alternative investors for loans rejected in due diligence.

With extensive experience in the sub-prime secondary market, BancCap's management is well qualified to help you get the most out of your product, while at the same time keeping your product menu as broad as possible.

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