DBRS Updates List of Acceptable Third-Party Due Diligence Firms

DBRS has today published its updated list of Acceptable Third-Party Due Diligence Firms. DBRS has added EdgeMAC, LLC as an acceptable due diligence firm for DBRS-rated transactions.

In an effort to ensure that a third-party due diligence firm is acceptable, DBRS conducts an on-site review to assess the staffing, infrastructure and capabilities of the company. Acceptable firms typically have the following:

-- Principals of the firm have significant market experience with appropriate operating processes and staff in place to perform the required tasks.
-- Underwriting staff have a minimum of two years of industry experience.
-- The firm’s underwriting criteria meet minimum industry standards for determining income, assets, employment and occupancy status.
-- The firm has access to legal counsel and/or has the appropriate compliance software in place to accurately interpret state, local and federal regulatory compliance statutes.
-- The firm has robust quality control procedures.
-- The firm utilizes industry-standard anti-fraud software.
-- The firm has property valuation software and employs or contracts with property valuation specialists to accurately assess property values.
-- The firm has adequate systems capabilities and data checking capabilities.
-- Disaster recovery procedures are in place and tested regularly.
-- Appropriate security measures are in place to ensure compliance with consumer privacy laws.

For more information about the approval process or to schedule an on-site review please contact Kathleen Tillwitz at ktillwitz@dbrs.com or refer to our “Third-Party Due Diligence Criteria for U.S. RMBS Transactions.”

Notes:
The applicable methodology is Third-Party Due Diligence Criteria for U.S. RMBS Transactions, which can be found on our website under Methodologies.

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.