Resolution Portfolio Management & Oversight - RPM Oversight

Resolution Portfolio 

Management & Oversight 

Mortgage Solutions 

www.rpmoversight.com

RPM Oversight 

WHO WE ARE 

RPM Oversight is comprised of a group of 

highly skilled mortgage industry veterans 

who specialize in creating value and 

maximizing return on investments in 

distressed residential mortgage loan and real 

estate portfolios.


EXECUTIVE TEAM 

The business is led by Neal, Jeffrey, and Ben Henschel, each of whom brings his own unique blend of 

experience in mortgage originations, underwriting, document and collateral review, legal compliance, 

servicing, special servicing and borrower work-out work out solutions, and debt collection and REO and foreclosure 

management services to our clients. 

Their vast experience has allowed them to participate in multiple multiple 

areas within the mortgage industry and to 

develop a level of expertise that will be essential in delivering delivering 

extra returns and adding significant value to 

the loan and REO portfolios of RPM’s RPM s clientele. 

Neal Henschel – Chief Executive Officer. Neal has some thirty years of experience experience 

in the home equity 

business, having owned and operated a number of national mortgage mortgage 

companies, including two major 

subprime mortgage lenders that he built with his son Jeffrey. He He 

started in the home equity business in 

Florida in 1977, and not long after, founded the company that was was 

a predecessor to subprime powerhouse 

First NLC Financial Services, LLC. In February of 2005, when First First 

NLC was the seventeenth largest 

subprime originator in the nation, Neal and Jeffrey sold the company company 

to Friedman, Billings, Ramsey Group, 

Inc (FBR:NYSE). 

Over the years, Neal and his team have weathered the full range of market conditions, including the Long- Long 

Term Capital Management/Russian Default liquidity crisis in August August 

of 1998 and the most recent subprime 

mortgage crisis of 2006-07. 2006 07. Neal has always been a hands-on hands on CEO, directly involved in the decision 

making for credit, underwriting, operational, and secondary marketing marketing 

policies, and taking active roles in 

loan buyback and distressed loan disposition. Over the last seven seven 

years, Neal and his team have actively 

managed more than $20 billion worth of mortgage originations and loan sales.



Jeffrey Henschel – Chief Operating Officer. After receiving his JD/MBA from Tulane Tulane 

University, Jeffrey 

spent two and a half years practicing in the areas of commercial and real estate litigation for one of Florida’s Florida s 

largest firms, Carlton, Fields et al. He started his career in mortgage lending in 1994 as Senior Vice 

President and Chief General Counsel of National Lending Center f/k/a f/k/a 

The Lending Center, a national 

subprime mortgage originator and predecessor of First NLC. He spent spent 

ten years as President and Chief 

Operating Officer of First NLC and was involved in the day-to day to-day day running of the business as well as every 

aspect in the development of credit policy, underwriting guidelines, guidelines, 

and operational processes and 

procedures. Jeffrey was also responsible for the executive management management 

of accounting, information 

technology, warehouse lending, human resources, legal, secondary market loan sales and loan buyback 

and distressed loan disposition. 

Ben Henschel – President. Ben received his Bachelor’s Bachelor s and Juris Doctorate degrees from Tulane 

University in New Orleans. Prior to becoming the President of RPM, RPM, 

Ben was the Director of Loss Mitigation 

at First NLC. He also owned, managed and represented title insurance insurance 

companies, as well as real estate 

development and brokerage companies. Ben has directed and negotiated negotiated 

investor repurchase, loss 

mitigation, and distressed asset purchase and sale projects – most notably global investor settlements – for 

our various subprime mortgage companies. He has more than twenty-four twent four years of experience in 

negotiating and successfully consummating a variety of commercial commercial 

transactions, and has repeatedly 

achieved successful results in maximizing the sale proceeds of clients clients’ 

repurchased and problem loan 

portfolios. 

In 2007, Ben took on the challenge of resolving billions of dollars dollars 

of repurchase, indemnity, and other claims 

by investors, and in response formulated persuasive and effective effective 

defense and rebuttal negotiation 

strategies. These defense strategies were ultimately extraordinarily extraordinarily 

successful in resolving those investor 

claims. As a result, in consultation with RPM team member and corporate corporate 

counsel Robert Bello, Ben was 

able to negotiate and finalize global settlement and release arrangements arrangements 

with investors, thereby resolving 

over $8.5 billion in mortgage loan liability.



Robert G. Bello – General Counsel and Loss Mitigation Specialist. At the University University 

of Pittsburgh, Robert 

obtained his Bachelor’s Bachelor s Degree from the Honors program in 1984 and his Juris Doctorate degree in 1989. 

Licensed to practice in Florida, Pennsylvania and Maryland, Robert Robert 

litigated hundreds of cases as a 

successful trial attorney for nine (9) years. He was then recruited recruited 

to become the Deputy General Counsel for 

First NLC, where he provided broad based legal counsel to the executive executive 

and management teams for ten 

(10) years, prior to becoming RPM’s RPM s General Counsel. Early in his First NLC career, in addition to corporate 

counsel duties, Robert was also tasked with the responsibility of of 

managing First NLC’s NLC Loan Servicing 

department. As the Servicing Manager, Robert developed effective loan monitoring protocols, as well as 

managed collection, servicing, escrow, and borrower payment issues. issues. 

For more than six years, Robert has worked with RPM President Ben Ben 

Henschel to evaluate the liquidation 

and loss mitigation challenges presented by loan repurchase portfolios. portfolios. 

As the team’s team s expert in Master Loan 

Purchase Agreements with Wall Street investors, he has drafted numerous numerous 

(a) distressed asset and 

mortgage loan purchase and sale agreements and (b) investor loan repurchase settlement agreements. His 

expertise includes resolving pre and post-sale post sale contractual claims concerning sold loan portfolios, including including 

loan default, title, legal compliance, and fraud issues, as well as potential litigation issues raised by 

distressed asset purchasers. When fraud or wrong-doing wrong doing has been discovered relative to a purchased or sold 

loan, he has directed case strategy with outside counsel to litigate litigate 

the recovery of damages. 

Andrew Henschel – Vice President, Corporate Governance. After receiving his JD from from 

Tulane University, 

Andrew spent three years as an assistant District Attorney in New New 

York City, prosecuting numerous major 

criminal cases for the state. After moving to Florida, he served two years as a litigation associate at a large 

insurance defense firm in south Florida. In 1993, Andrew opened a litigation law firm in Miami, Florida, and 

practiced in the areas of complex civil litigation and creditor/debtor creditor/ debtor issues, including foreclosures, as well as 

corporate and real estate matters for First NLC. In 2004, he joined joined 

First NLC full time and headed the 

Corporate Governance division, with primary responsibilities in Sarbanes-Oxley Sarbanes Oxley compliance, corporate 

governance issues, and legal matters relating to personnel. Andrew Andrew 

is licensed to practice law in Florida and 

New York.



Yona Erblat – A Business Administration major of City College of New York, Yona is a 25 year 

veteran of the mortgage industry. As the first employee of the initial initial 

mortgage company formed by Neal 

Henschel in 1987, she served in various capacities and over the years developed a substantial amount 

of experience and expertise in the wholesale and retail origination origination 

of prime and sub-prime sub prime loans, most 

notably in the areas of credit and collateral review. After serving serving 

in various senior managerial 

underwriting and processing roles, in 2002 she attained the position position 

of National Credit Officer of First 

NLC and was responsible for managing the company’s company s underwriting and appraisal departments. She 

was the primary employee in the corporate headquarters responsible responsible 

for evaluating mortgage loans 

and appraisals over $500,000 and had unlimited sign-off sign off authority. Throughout her career at First NLC, 

Yona was the go-to go to person for structuring difficult or hard to place transactions. 

transactions. 

Steven Brand – Servicing and Special Servicing Manager. Steven has worked with the RPM 

Executive Team for 9 years, including his tenure as the Servicing Servicing 

Manager at First NLC. In this 

capacity, Steven managed the day to day servicing operations of First NLC, including supervision of a 

team of loan collectors and payment and escrow operations. At RPM, RPM, 

Steven manages the Servicing 

and Special Servicing Group and oversees the day to day operations operations 

of all investor mortgage loan and 

REO portfolios. 

With respect to each portfolio loan, Steven is responsible for handling handling 

the initial loan data analysis and 

compilation via upload into RPM’s RPM s proprietary database. His expertise in all aspects of the mortgage mortgage 

loan evaluation and servicing process includes the following primary primary 

responsibilities: servicing data 

analysis and reporting; property valuation; skip tracing; loan modification modification 

preparation, analysis and 

approval; loan pool and file analysis; special servicing supervision supervision 

and coordination; primary liaison 

with servicers for all servicing, loan rehabilitation and work-out work out issues, and escrow and payment 

issues; coordinate due diligence efforts; preparation of spreadsheets spreadsheets 

and reports for macro analysis.


VISION 

�� RPM Oversight delivers the level of expertise, service and 

commitment you need so that you can focus on your core 

competencies, as opposed to diverting key resources to manage 

your residential mortgage loan and real estate portfolios. 

�� We have created an organization with the skill and experience to 

achieve maximized returns on distressed residential mortgage 

and/or real estate portfolios. 

�� RPM manages self-liquidating self liquidating assets to their fullest potential. 

�� RPM delivers multiple opportunities for investment to those with 

varying levels of experience in the residential mortgage and real real 

estate markets.


MORTGAGE SOLUTIONS 

�� PORTFOLIO REVIEWS 

�� DUE DILIGENCE 

�� QUALITY CONTROL 

�� SERVICING OVERSIGHT



Portfolio Reviews


PORTFOLIO REVIEWS 

�� RPM’s RPM s process starts with a review of each mortgage portfolio in order order 

to 

assess current market value, default risk on a loan level basis and the 

client’s client s views and objectives relative to portfolio risk and return. 

�� RPM’s RPM s review process utilizes numerous metrics, valuation protocols and 

variables that facilitate stress testing loan portfolios for current current 

and future 

market conditions and worst case scenarios. 

�� Portfolios are grouped into smaller pools with similar characteristics, characteristics, 

such 

as: 

�� Loan Level Performance 

�� Lien Position 

�� Credit Grade 

�� DTI 

�� Doc Type 

�� Rate Type



Due Diligence and Quality Control


DUE DILIGENCE 

Understanding the process and decision making utilized 

when making a credit decision is essential in gauging the 

expected performance of any pool. RPM’s RPM s extensive Due 

Diligence protocols are designed to drill down and 

evaluate each loan file and provide you with the 

information needed to make knowledgeable decisions 

regarding the portfolio on a macro as well as a loan by 

loan basis. RPM’s RPM s experienced team is well suited to 

evaluate portfolio characteristics and render 

comprehensive recommendations in today’s today s challenging 

mortgage market.

Products: 

�� Seasoned Loans 

�� Distressed Assets 

�� Compliance Issues 

�� Performing and Non Performing 

�� Putback Demands 


DUE DILIGENCE 

Process: 

�� Pay History and Collector Comment 

Analysis 

�� Loan Level Review 

�� Borrower’s Borrower s Current Credit Profile 

�� Fraud Review 

�� Federal and State Compliance 

Review 

�� Analysis of Ability to Repay 

�� Analysis and Rebuttal of Putback 

Demands 

�� Property Inspection and Valuation 

�� Tax and Insurance Coverage 

Analysis 

�� Title and Insurance Claim Analysis 

�� Third-Party Third Party Fee and Invoice Review


CREDIT REVIEW 

RPM’s RPM s credit review examines information from Borrowers’ Borrowers credit reports 

and other known data to provide real-time real time credit profiles for all borrowers in 

a portfolio. 

The review provides the following data: 

�� FICO Score Updates 

�� Delinquency Patterns 

�� Status and Utilization of Available Credit 

�� Re-Calculation Re Calculation of DTI based on current income information 

�� Address Fraud Review based on occupancy status 

�� Analysis of other Real Estate Debt and Properties Owned 

�� Neg Am and/or Modification Review 

�� Eligibility for Potential Refinance or Loan Modification 

RPM’s RPM s Underwriters analyze this data to determine trends and estimate estimate 

the 

ability of borrowers to make future payments in an effort to determine determine 

the 

best course of action on each loan in a portfolio.


REAL ESTATE VALUATION REVIEW 

RPM’s RPM s Property Valuation process utilizes appraisals, BPOs, 

AVMs, zip code foreclosure statistics, sale projections and other other 

available information to provide an estimate of the value of the 

collateral securing each loan. 

RPM provides a summary of all data supporting the final 

conclusion including: 

�� Current Property Condition 

�� Comparable Commentary – explanation of all properties used 

in analysis 

�� Market Commentary – explanation of current market trends 

and influences 

�� Map of Comparable Properties Used

Compliance Review 

Credit & Collateral Review 

Servicing Comment Review 

Pay History Review 

Re-Purchase Re Purchase Review 

Real Estate Valuation 

Review 

Pass Through Hard Costs 

$175 

file 

$75 

file 

$75 

file 

$25 

file 

$10 

file 

$250 

file 

$75 

file 

Pd by 

client 


FEE SCHEDULE FOR PORTFOLIO AND LOAN 

LEVEL REVEIWS 

Seasoned Loan Product 

Credit & Compliance Review 

Review of legal documents including title, compliance review, State, State, 

Federal & Local, credit review 

including analysis of current credit report & DTI, occupancy and employment, collateral valuation 

review, pay history (all debt) and collector comment review, taxes, taxes, 

escrow, insurance, third-party third party 

invoices, legal recourse against third-parties 

third parties 

Review of all legal documents, title and compliance to all HOEPA, HOEPA, 

APR, TILA, State and/or County 

predatory lending regs, prepayment penalties and notice of right to cancel, docs are further checked 

for proper dates and execution by all parties 

Review of application (1003) original and current credit reports, reports, 

recalculation of DTI, consistency or 

delta report of information on 1003 vs. current credit report, income income 

and occupancy best efforts fraud 

report, reasonableness of collateral valuation review 

Ability and willingness to pay analysis, and current servicing tactics tactics 

Up to 18 months reviewed, includes payment counters 

Credit, compliance, legal docs, pay history and servicing comment comment 

review with a concentration on 

fraud and rep & warranty issues 

Provide summary of all data supporting the final value conclusion conclusion 

including: current property 

condition, comparable commentary, secondary market data commentary, commentary, 

and map of comparable 

properties used 

Any third-party third party costs associated with the due diligence process shall be pre pre-approved 

approved and paid by the 

client subject to receipt of invoices from RPM; examples are as follows: credit reports, AVMs/BPOs, 

compliance reports, title searches



Oversight of Mortgage Servicing 

and Collections


�� RPM Oversight manages distressed assets for portfolio 

maximization. Currently, RPM has over $85 million of residential residential 

loans and REOs under management. Loss mitigation, loan 

restructuring, modifications and expedited foreclosures or deeds in 

lieu are our specialty. Maximizing cash flow and returns is our 

mission. 

�� With over 100 years of combined experience, RPM is just the right right 

size to provide the necessary servicer oversight you need and treat treat 

your portfolio just like our own. 

�� RPM’s RPM s servicing oversight is the focal point of the company’s company s 

business model, with seasoned professionals with expertise in: 

�� Boarding / Escrows 

�� Credit Administration 

�� Collections 

�� Loss Mitigation 

�� Including Borrower Work-out Work out 

and Rehabilitation Solutions 

�� Bankruptcy 

�� Foreclosure 

�� REO 

�� Deficiency and Judgments 

�� Litigation


RPM’s RPM s servicing oversight maximizes the potential value of distressed distressed 

asset portfolios 

by using the following methodology: 

�� Maximizing borrower performance by establishing immediate direct ongoing contact 

and workout strategies. 

�� Quickly identifying delinquent accounts and implementing rehabilitation rehabilitation 

strategies 

�� Deploying a varied array of techniques designed to mitigate risk and resolve difficult 

collection situations 

�� Applying extensive experience in workouts, modifications and remote remote 

property 

management 

�� RPM’s RPM s servicing oversight quickly identifies those borrowers who are likely to move 

into seriously delinquent status and promptly applies appropriate appropriate 

loss mitigation 

strategies. 

�� Skip Tracing 

�� Door Knocks 

�� White Pages 

�� Home Counseling Visits 

�� Forbearance & Modifications 

�� Foreclosure Management 

�� Short Sale Facilitation 

�� Property Inspection 

�� Deed-in Deed in-Lieu Lieu of Foreclosure 

�� Collector Comment Review 

�� Loss Mitigation Counseling Expertise 

�� RPM has dedicated real estate (REO) staff with extensive experience experience 

in property 

evaluation, management and the sale of leasing of foreclosed residential residential 

properties.


WORKOUT OPTIONS 

Loss Mitigation actions are taken to retain the loan or reduce loss loss 

severity (subject to agency and client guidelines) 

Retain Loan: 

� Reinstatement 

� Repayment plan / Forbearance 

� Modifications 

� Capitalization of delinquent amount 

� ARM to fixed loan conversion 

� Term extension 

� Step interest rates 

� Shared appreciation 

� Rate reduction 

� Principal balance reduction 

Reduce Severity of Loss: 

� Payoff 

� Short payoff 

� Note sale 

� Deed-in-lieu 

� Third-party sale 

� Loan Restructure (balance or rate 

write-down) 

� Refinance utilizing Federal 

Government and FHA programs such 

as “HOPE for Homeowners”


SERVICER/PORTFOLIO OVERSIGHT 

SERVICES 

The key portfolio management and servicer oversight services that that 

RPM will provide herein include the following: 

�� Perform its services through utilization of its own internally 

developed ROI and loss mitigation strategies, technologies and 

methodologies 

�� Monitor the Portfolio loan data and foreclosure status through its its 

internal database base and individual file review to implement and and 

conduct the services proposed and to provide periodic reporting to 

client 

�� Report to client on a weekly and month-end month end basis and grant client 

complete access to senior management


SERVICER/PORTFOLIO OVERSIGHT SERVICES 

Interface on a periodic basis directly with client’s client s designated servicer 

regarding all loan management issues, including, but not limited to: 

�� Foreclosure initiation, and general loss mitigation strategies 

�� Review and analysis of all foreclosure litigation files and pleadings, pleadings, 

direction to 

foreclosure and bankruptcy attorneys, and monitoring and managing managing 

the 

foreclosure process for each loan 

�� Property valuations, property condition and potential insurance or other claims, 

loan modifications, deeds in lieu of foreclosure, bidding instructions instructions 

at foreclosure 

sales, and short sales, etc. 

�� Review of fees and charges billed by third-parties third parties (i.e. foreclosure and bankruptcy 

attorneys, property maintenance vendors, real estate and insurance insurance 

agents, etc.) 

�� Negotiation and drafting of mortgage modifications, deeds in lieu lieu 

of foreclosure, 

and other loan resolution agreements where necessary, under the direction of 

client and to the extent permitted by applicable law


SERVICER/PORTFOLIO OVERSIGHT FEES 

Client agrees to engage RPM for an initial six (6) month term to perform the 

portfolio management and servicer oversight functions (“RPM ( RPM Management 

Services”) Services ) commencing upon the boarding by RPM of the first Portfolio. In 

exchange for the RPM Management Services client agrees to pay RPM RPM 

the 

following: 

(A) a one-time one time fifty ($50.00) dollar Set-up Set up and Boarding Fee for each loan; 

(B) a Management Fee of 2.08 Basis Points of the unpaid principal principal 

balance 

(“UPB UPB”) ) of the Portfolio per month for each managed loan; and 

(C) a Resolution Fee of two percent (2%) of the UPB with respect to any 

loan for which there is a resolution acceptable to client other than a 

foreclosure, including, but not limited to: (i) a deed in lieu of of 

foreclosure, (ii) 

a loan modification or forbearance agreement, (iii) a short sale, sale, 

(iv) a 

refinance or loan payoff (each considered a “resolution resolution”). ).


REPORTING CAPABILITIES 

�� RPM provides a robust data feed, custom reporting, and automated 

delivery 

�� On-line On line access to current data 24/7 

�� Daily and monthly reports 

�� Our system provides the tools to query your portfolio and report the 

information you need 

�� Web portal feature with easy navigation 

�� Clients can have independent access to our system


WHY SELECT RPM OVERSIGHT? 

�� Expertise in oversight of servicers of performing, sub-performing sub performing and non-performing 

non performing 

loans and multiple product types 

�� In 2008, $14MM of delinquent client portfolio loan balances have been rehabilitated 

through RPM’s RPM s loss mitigation solutions, resulting in collective savings to RPM’s RPM s 

clients of roughly $6MM when compared with current ROI forecasts associated with 

foreclosure and REO sale resolutions 

�� Proven ability to rehabilitate non-performing non performing assets which is an invaluable service in a 

market where owning REO is a worst case scenario 

�� RPM’s RPM s servicing oversight platform is supported by experienced mortgage mortgage 

professionals, technology, and robust procedures 

�� Opportunity to focus on your core competencies, save money and rev rev 

up your returns 

�� Customized, concise reports available when and where you want them them


FOR FURTHER INFORMATION, 

CONTACT: 

Jeffrey Henschel, COO 


866-661 866 661-4776 4776 x102 

www.rpmoversight.com

Resolution Portfolio Management & Oversight - RPM Oversight

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