Due Diligence Compliance Tools for B-Ds

Asset Monitoring for Performance Assurance You Can Afford

Those dreaded investment fraud complaints, FINRA audits and insurance costs make having the right due diligence compliance tools for B-Ds the “must-have” business survival tool.

Compliance Costs Money & Time You Don’t Have

Profit margins for securities broker-dealers have been taking a beating and compliance is costing money, careers and the very freedom of some securities industry professionals. Due diligence compliance is the drum the regulators beat. Those investment fraud allegations cost real money and create real exposure that hits everyone’s bottom line. It all comes down to that one driver that creates the highest amount of continuing exposure to investment loss severity risk – default risk. Default risk in all its forms – especially in alternative investments like commercial real estate securities offerings – is that one part of underwriting the industry’s tool kit seems to always be lacking. Default risk exposure in new construction commercial real estate transactions is especially difficult for underwriters, investors and issuers to understand. In the end, your profits go out the window because you just can’t get over the default risk hump. All that wasted time, resources and effort just keeps you up at night wondering if there will ever be a solution…

default risk underwriting new construction commercial real estate

You can’t be serious about managing investment loss severity risk without having a comprehensive default risk management and prevention regimen that is affordable, efficient and responsive to the need to fix broken transaction structures and proposals that would otherwise result in a rejection. An underwriting tool kit that can really address default risk has to be a comprehensive solution that is both end-to-end in nature, and perpetual in nature. Due diligence compliance audits demand no less.

The B-Ds underwriting tools have to include a proactive system of financial reporting, fraud elimination, business intelligence, funds custody and forensic transaction auditing that dovetail into vendor contract controls. That’s what iCREDIT provides…

If your underwriting tool kit stops with the close of the securities offering’s escrow, you are really exposed. Your underwriting obligations don’t end with funding – they continue for the entire holding period of the investment and that means the due diligence system has to perform comprehensive capacity, collateral, credit and default risk underwriting assessments every month after funding, and do it on an affordable basis. Ideally, a net zero cost basis for having this tool would be ideal. That’s what iCREDIT provides…

Business, CRE & Corporate Fraud & Embezzlement Prevention

What do you have? Profits, reputations and business survival could be at risk. Take a few moments and find out what the future of compliance looks like by contacting us today.

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