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Allonhill Unveils Complete Securitization Solution for RMBS Issuers

Approach Meets New Requirements from Four Major Rating Agencies; Offers Issuers and Underwriters Pre- and Post-Securitization Third-Party Review Services

DENVER (Jan. 28, 2010) - Allonhill, an independent third-party review firm specializing in mortgage due diligence and credit risk management, today announced the formal release of a complete securitization solution for issuers and underwriters of residential mortgage-backed securities (RMBS). The new approach to securitizations offers issuers a turn-key solution by meeting the requirements of all four major credit rating agencies for third party review firms.

The certification means Allonhill is an approved contractor to perform due diligence on publicly traded
RMBS. The program was designed by S&P to help companies identify third-party review firms that meet
the highest standards of accuracy, accountability, transparency and independence.
The months-long review by S&P explored all aspects of Allonhill’s business, including experience,
systems, infrastructure and policies.
“This is an important milestone and validation for our company that we are doing the right things to both
produce superb results for our clients and fix problems that contributed to the mortgage meltdown,” said
company founder and CEO Sue Allon. “I applaud S&P’s recognition of the importance of high-quality
third-party reviews in restoring confidence in our industry.”
S&P is one of three main agencies which assign ratings to bonds and securities that investors use in
making buying decisions. For example, a bond carrying a AAA rating is considered a safer investment
than a bond carrying a B rating. Those ratings have come under scrutiny in the wake of the mortgage
collapse and ensuing economic slowdown, as mortgages within even the highest-rated classes of
securities defaulted at high rates and went into foreclosure.
S&P announced more stringent policies around its ratings in late 2008, including a new assessment for
third-party review firms that perform due diligence on securities.
Allonhill’s propriety due diligence and credit risk management systems are considered the industry’s gold
standard because of their superior scalability, customization, checks and balances, and real-time access
and reporting. A recent load test by Web Performance, which performs tests for and, verified that Allonhill’s systems can handle the review of 1 million loans by 300
simultaneous users spread across the country with no impact on performance.
Allonhill has seen impressive growth since its founding in 2008, doubling the number of full-time
employees in the past five months and tripling its workforce in the past year. The company works with
some of the country’s largest and most respected investment banks and other private investors as well as government agencies.
“We set out to reinvent the mortgage industry with the best people, systems and approach in the market,” Allon said. “The approval by S&P is one more indication that we’re achieving just that.”

Allonhill's approach is the first complete securitization solution incorporating the latest industry requirements in the wake of the mortgage collapse. The approach provides a high level of transparency and reliability concerning the loans underlying securities.

"We are rewriting the securitization process," said Allonhill CEO Sue Allon. "We're proud to be the first third-party review firm to market with a comprehensive approach addressing the needs of a variety of market participants, to help bring our industry back to life in a responsible way."

Allonhill's approach incorporates:

  • New requirements of major credit rating agencies
  • Scientific sampling methodologies and practices that are documented and incorporated into the system
  • Tracking and reporting of loan errors, exceptions and their resolution
  • A signed attestation of Allonhill's review procedures, findings and their disclosure

New York Attorney General Andrew Cuomo issued new rating agency requirements in 2008 calling for better sampling methodology and error resolution procedures, stricter third-party review firm qualifications and ongoing monitoring of securities. Allonhill consulted with four leading rating agencies - Standard and Poor's, Moody's Investors Service, Fitch Ratings and DBRS - to ensure its securitization solution meets all new requirements for public and private securitizations from each of the agencies.

Allonhill's offering includes a desk reference manual for clients detailing rating agency requirements and the firm's sampling methodology.

"While the rating agencies share the goal of restoring transparency and credibility to the securitization market and meeting new regulatory and statutory requirements, they each go about it in a different way, forcing issuers and other market participants to confront a variety of securitization standards," said Allonhill President and Chief Operating Officer Diana Mead.

"Allonhill literally has written the book on rating agency requirements and the most effective way to navigate the third-party review process in today's climate."

The new approach includes every aspect of the securitization process, from pre-sale due diligence, transaction preparation and rating agency compliance to post-securitization risk monitoring.

Allonhill also adopted the ASF's new universal mortgage loan identification code, ASF LINC.

About Allonhill

Allonhill, based in Denver, is a third-party review firm specializing in mortgage due diligence and credit risk management to help mortgage market participants understand, manage and reduce risk. Founded in 2008 and led by an executive team of seasoned industry experts, Allonhill offers a variety of services including loan-level analysis and surveillance of whole loans, mortgage-backed securities and collateralized debt obligations (CDOs), servicer evaluation, modification program outsourcing and consulting. Clients include institutional investors, private hedge funds, broker/dealers, government agencies, servicers and other mortgage service providers. For more information, visit



Media Contact:
Russ Rizzo
[email protected]
303-951-2561 office
303-453-9115 cell

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