Harrison Prescott provides a unique service for the financial services industry, offering a proprietary analysis of asset originations. The results of our analysis will be improved marketability of securitizations among investors, increased transparency and improved consumer protections.
In 2008, investors in Asset Backed Securities (ABS) fled the market after suffering extensive losses resulting from the origination of sub-prime and Alt-A loans that were of less than sterling quality. Originations did not meet regulatory standards, even after de-regulation, resulting in an exceptionally high number of loan defaults.
The relatively sudden departure of investors resulted in a near total collapse of the banking system as the flow of funds through lenders came to a grinding halt. The result was the creation of TARP, used as a Capital Injection Program to infuse banks with funds to keep them operating.
Obviously, the key to preventing future problems and improving the market for securitizations is increased investor confidence through independent, disinterested third-party review of originations. That’s where Harrison Prescott comes in.
Our unique process reviews more than data points, but actual compliance, determining risk based on several key criteria and identifying that risk analysis for investors. We do not provide information directly to investors, but to issuers of securitization offerings who are mandated under Dodd-Frank to make that information known to prospective investors.