ATTAIN FOR HIGHER PRINCIPLES
HOW FINANCIAL INSTITUTIONS BENEFIT
AI/ML
ATTAIN’s AI/ML algorithms applies to all commercial property types including:
Office, Industrial, Retail, Hotel, Multifamily, Senior Housing/Healthcare, Self Storage, and Development Sites.
ASSET TEAM
Our team works across all stages of an investment’s life cycle, from sourcing and due diligence during the acquisition process, to monitoring of investments throughout the holding period and monetization process. Having deep experience in NPLs and structured transactions, our investment professionals have significant experience in multiple sectors through various market cycles, providing for a trusted reputation among financial institutions and in the NPL community.
PARTNERSHIP
Financial institutions benefit through NPL disposals because doing so strengthens profitability and capital ratios. NPLs require an infrastructure that can source, screen, underwrite, finance, migrate, service, and ultimately monetize thousands of borrowers, loans, and assets across multiple geographies. ATTAIN has the extensive infrastructure and experience required to invest in NPL portfolios of significant size and collateral.
RWA STRESS & THE ATTAIN ADVANTAGE
As experienced NPL portfolio managers, we work with US financial institutions including G-SIB, D-SIB, Mid-Market to Community level banks as well as GSEs.
Banks are currently required to satisfy several minimum capital requirements, generally expressed as ratios between items on bank balance sheets. Capital ratios fall into one of two main types—a leverage ratio or a risk-weighted ratio.
A leverage ratio treats all assets the same, requiring banks to hold the same amount of capital against the asset regardless of how risky each asset is.
A risk-weighted ratio assigns a risk weight—a number based on the riskiness of the asset that the asset value is multiplied by—because some assets are more likely to lose value than others. Riskier assets receive a higher risk weight, which requires banks to hold more capital—to better enable them to absorb potential losses—to meet the ratio requirement.
Mortgages held on bank portfolios are generally subject to a 50% risk weight (4% capital requirement). When they become 90 days DQ, the risk weight rises to 100%. Troubled debt restructurings (mortgage modifications on formerly delinquent loans) are also 100% RWA.
This is where ATTAIN comes in. We purchase select non-performing portfolios - thereby helping strengthen required capital ratios. Then we actively manage them via our proprietary AI/ML platform along with our seasoned asset management team and third-party licensed servicing partners in local jurisdictions.
“When algorithms are responsibly designed, they may avoid the unfortunate consequences of amplified systemic discrimination and unethical applications.”
— Brookings Institution Study on ‘Algorithmic Bias Detection and Mitigation.’