I was employed by FITS, Inc. (Financial Industry Technical Services) as a SME (Subject Matter Expert) “Senior Level Credit Risk Consultant”. In this role I trained junior level Consultants on how to check for Bank Compliance with the FDIC Loss Share Agreement Program. I developed the Auditing/Compliance Company for the Project Leader.
Basically when Banks purchase loan portfolios of failed or soon to fail banks, they are subject to Loss Share Agreements with the FDIC. These Agreements serve as an incentive for healthy financial institutions to purchase poorly performing loan portfolios and should the acquiring bank be unable to service the loans (collect payments) they are with recourse, that is, they can turn to the FDIC and make claims for payments from them. As FITS, Inc’s Subject Matter Expert, I trained teams of Consultants on how to test the acquiring Bank to see that they collected the loans as if they originated the loans themselves or if they merely filed claims without concerted efforts to collect on the loans.
This was a major accomplishment in that I helped the federal government avoid making payments to banks who acquired loan portfolios that didn’t try to collect the loans. I did a civic and moral duty for the US Federal Government via the FDIC through FITS, Inc. by saving the taxpayers dollars from Bank Officers who fraudulently made claims on loans they actually claimed to have tried to collect the past due balances and in fact, never made any attempts. These loan portfolios involved, consumer loans (Mortgages, Second Mortgages and Refinanced loans) as well as Commerical Loan Portfolios.