BFS provides services to the financial sector which includes the operation of a Full-Cycle Mortgage Servicing Platform, Real Estate Investment and Asset Management, Capital Markets Development, and Advisory Services.
FULL-CYCLE MORTGAGE SERVICING PLATFORM
On the back of the acquisition of a substantial non-performing residential mortgage portfolio by the Fund in the Philippines, BFS built an international best-practice, full-cycle mortgage servicing operating platform, encompassing loan origination, loan underwriting, loan servicing, credit management, valuation, remedial management, default management, loss mitigation, property management, property sales, and secondary marketing. Consistent with the retail and high-volume nature of the mortgage servicing business, the platform features highly automated, workflow driven processes and maximum standardization of process steps along with the ability to incorporate idiosyncratic requirements of clients and/or local jurisdictions for all facets of the mortgage servicing business. BFS follows international best practices patterned after the U.S. prime mortgage market, lending institutions, and servicing institutions. As a result, BFS MSP is also uniquely positioned to address the servicing requirements of residential mortgage owners and investors, such as banks and developers, so that, through outsourcing of the mortgage servicing function to BFS MSP, these parties may concentrate on their respective business core competencies.
REAL ESTATE INVESTMENT AND ASSET MANAGEMENT
The Fund’s excellent track record as a real estate investor is largely based on its ability to marry investment evaluation and deal structuring with actual asset management experience. BFS provides the needed local skill sets to allow for prudent investment and management of these investments. In addition to primary and special servicing, BFS’ expertise includes real estate investment analysis and due diligence, property valuation, real estate corporate finance, property development, project management, property management, and marketing.
CAPITAL MARKETS DEVELOPMENT
An integral part of the asset management function performed by BFS for the Fund’s investments comprises the secondary distribution of serviced mortgage loans to financial investors. Loans restructured and serviced by BFS have met the most exacting standards of conservative, highly-regulated banks and BFS has successfully developed a secondary market in the Philippines for re-sale of its newly performing loans. Whole loan sales represent a critical exit strategy for portfolio investments and BFS provides high-value, on-going servicing to expand and develop the secondary market. In the future, BFS may explore the creation of Real Estate Investment Trusts, as and when the economic, legal, and regulatory environments permit, and asset securitization, as additional tools for greater financial investor participation in the income opportunities presented by real estate assets in general.
BFS also provides advisory services based on client concerns and in-house expertise and experience.