Service mitigates issuer risk in regulation AB.
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Press Release Summary:
Recon data management and transaction reconciliation services provide third-party, independent comparison and analysis of collateral, as well as bond values and investor calculations. Suited for issuers with multiple servicing systems and/or master and subservicer relationships, it also reduces the chance of generating 10-D reports that are inconsistent with Reg AB's Item 1105 Static Pool Information.
Original Press Release:
Lewtan's Recon Mitigates Issuer Risk and Minimizes Compliance Costs
Recon Helps Issuers Manage Reg AB, Respond to Compliance and Reporting Challenges, and Showcase Past Performance to Investors via Data Warehouses
WALTHAM, Mass., Dec. 19 / - Lewtan Technologies, Inc., provider of asset-backed securities surveillance, analytics, and content for the global securitization industry, today introduced Recon, a set of data-management and transaction-reconciliation services for mitigating issuer risk in the new era of Regulation AB. Recon is especially appealing to issuers with multiple servicing systems and/or master and subservicer relationships, and the services are a real boon to organizations with existing data-integrity issues or operational voids created in the transition to Reg AB. Beyond compliance, Recon helps issuers aggregate performance data to use in showcasing offerings to investors.
"In the new world of Reg AB, issuers face increased liability for the material accuracy of their securitized-transaction data - including a great deal of data that they don't originate or control themselves," said Paul Arvidson, vice president, Lewtan. "The situation is further complicated by disagreements about how Item 1122 servicer attestation should be carried out. Leveraging decades of experience and its unrivaled data warehouse, Lewtan created Recon to help issuers comply with regulations, mitigate risk, and illustrate past performance with historical data."
Mitigate Risk and Minimize Cost
Recon provides third-party, independent comparison and analysis of the collateral supporting a deal, as well as bond values and investor calculations. This is invaluable to issuers, who, since January 2006, have faced an increased liability standard for static-pool data on deals. Recon also greatly reduces the chance that an organization will generate a 10-D report inconsistent with Reg AB's Item 1105 Static Pool Information.
Firms who engage in the evolving best practice of continuous auditing can use Recon to automatically evaluate the veracity of their current remittance reports prior to the subsequent remittance period. The challenge of balancing accuracy and comprehensiveness against the cost of this validation can be daunting for firms auditing data on a random basis using manually intensive spot-checking; Recon offers a simple, cost-effective solution.
Recon also reduces the overall auditing expense required for Sarbanes- Oxley and Reg AB compliance by leveraging Lewtan's completely up-to-date 80,000+ bond-data warehouse (remittance-report data that Lewtan already collects and systematically checks), thus eliminating the need for issuers to build duplicate warehouses. By systemically automating data checks, Recon virtually eliminates human error. Leveraging Lewtan's data infrastructure in lieu of ad hoc data auditing is generally the most economical approach, as well as the fastest to implement.
A Turn-Key Solution for Compliance and Risk Mitigation
The Recon service includes errors and omissions testing; collateral reconciliation; capital structure modeling and waterfall testing; trend analysis, reasonability checks; data management and warehousing; and coordination with trustees and servicers. To talk to a Lewtan expert about how Recon can improve your organization's securitization operations, call 781-898-9800 extension 1213.
About Lewtan
Lewtan Technologies, Inc., offers a wide range of content- and technology- based solutions to members of the global asset-securitization industry, including issuers, investors, underwriters, servicers, credit enhancers, and rating agencies. More than 300 institutions worldwide rely on Lewtan's intelligence and surveillance solutions, and the company has twice been named Global Technology Provider of the Year by the International Securitisation Report. More information is available at www.lewtan.com.
Source: Lewtan Technologies, Inc.
CONTACT: +Christine
Cobuzzi of Lewtan Technologies, Inc., +1-781-672-1151, or christine.cobuzzi@lewtan.com
Web site: www.lewtan.com/
