Investment Process

Our investment process has been developed and proven over different market environments. The Grander Investment Team employs a rigorous disciplined investment thesis relying on our 100 years of combined banking and investment management experience.

Sourcing

  • Leverages deep C-suite relationships across banks and top originators for exclusive, off-market MSR flow
  • Direct negotiations with sellers create advantages pricing not broadly available in the market.
  • Benefits from long-term partnerships with sub-servicers and financing providers, creates a pipeline of attractive investment opportunities.

Portfolio Due Diligence

  • Conduct comprehensive pre-purchase due diligence at the individual loan level.
  • Reviews portfolio performance at loan level documentation integrity, GSE eligibility, prepayment trends, and servicer data accuracy.

Modeling & Pricing

  • Utilize proprietary MSR pricing and evaluation model.
  • Includes interest-rate sensitivity, prepayment forecasting, servicing cost inputs, and stress testing.
  • Benchmarked against independent third-party pricing for accuracy and transparency.
  • Ensures acquisitions meet target return thresholds.

Compliance

  • Perform detailed compliance analysis to confirm adherence to FNMA/FHLMC and state regulations.
  • Validation of borrower data, escrow procedures, and servicing transfer protocols.
  • Continuous monitoring reduces operational and reputational risk and maintains regulatory standing.

Sub-Servicer Oversight

  • Grander maintains daily online monitoring and direct communication with sub-servicers at the loan level.
  • Oversight covers delinquency trends, loss mitigation timeliness, remittance accuracy, and quality of borrower communications.
  • Utilize structured scorecards and escalation protocols to promote accountability and maintain consistent servicing quality.

Sub-Servicer & Recapture Contracts

  • Maintains long-term, performance-based agreements with leading sub-servicing and recapture partners.
  • Aligns economic incentives to prioritize borrower retention, recapture, and customer satisfaction to optimize yield.
  • Contracts allow flexibility to reallocate or transition servicing if performance benchmarks are not met.

Portfolio Monitoring & Surveillance

  • Analytics platform provides real-time, loan-level transparency into performance and valuation.
  • Daily monitoring flags anomalies tied to payments, delinquency, or escrow activity.
  • Enables rapid intervention and early risk detection, protecting asset value.

Portfolio Pricing

  • Uses independent valuation to corroborate internal pricing and ensure transparency.
  • Integrates daily market adjustments, including MSR trade levels, servicing expenses, and prepayment assumptions.
  • Ensures valuations reflect true, realizable economic value.