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At Hosper, we ensure your investment is secure through a robust 6-layer risk management system designed to safeguard investor capital at every stage of the lending process.
Our comprehensive approach minimizes risk and enhances investor confidence, so you can focus on growing your wealth with peace of mind.
The 6 walls of capital protection for every mortgage loan
Pre-Closing: Strategic Risk Management Before Funding
- Underwriting Excellence
- Property Valuation: A precise property appraisal is conducted by approved appraiser or valuation expert. This ensures the loan is secured against the property’s true market value, minimizing investment risk.
- Risk Assessment (Loan-to-Value): We maintain our Loan-to-Value (LTV) ratios under target to reduce risk exposure and protect investor capital. Lower LTV indicates less risk for lenders.
- Borrower Review and Exit Plan: Hosper’s experts analyze the borrower’s financial situation and repayment plan, ensuring a clear and achievable exit strategy. A strong financial profile and feasible exit plan increase lender confidence, lowering default risk and enabling informed mortgage underwriting decisions.
- Legal Due Diligence
- Fraud Prevention Measures: We meticulously verify borrower information and property titles to identify any discrepancies or undisclosed liabilities, eliminating the risk of fraudulent transactions and ensuring compliance with legal requirements.
- Title & Writ Search: A legal title and writ search are completed by confirming property ownership, revealing undisclosed liens, judgments, or writs, and verifying the seller's right to sell. This thorough review ensures clear title transfer, reducing fraudulent transactions and protecting both lender and borrower interests.
- Title Insurance: Lender title insurance protects the lender against unforeseen title defects or legal challenges, offering peace of mind to investors.
- Secure Loan Contracts: We ensure every mortgage contract aligns with compliance and fosters steady returns.
Post-Closing: Strategic Risk Management After Funding
- Proactive Loan Servicing
- Dedicated Borrower Care Team: Our Customer Care Team provides personalized payment plans, promptly addresses financial concerns, and implements early intervention strategies for borrowers to minimize defaults and maintain a steady cash flow.
- Proven Collections Process: A clear NSF (non-sufficient funds) collections process lowers mortgage borrower risk by swiftly addressing insufficient fund payments, providing timely notices, and offering solutions to resolve missed payments.
- Flexible “Outside The Box” Solutions: We offer tailored solutions for mortgage borrowers, like flexible payment plans or refinancing options, to mitigate default risk by addressing individual financial challenges. This customized support helps borrowers manage payments effectively, reducing financial stress and improving the likelihood of loan repayment.
In situations where a mortgage is more than 60 days in arrears without a clear payment plan, we may need to enforce the property to protect our investors' capital.
- Property Rehabilitation: Enhancing Value and Security (in case of enforcement)
- Trusted Home Inspection Partners: Professional inspectors identify necessary repairs and improvements to ensure the property maintains or increases its value, allowing sellers or owners to command higher prices and optimizing the return on investment for all parties involved.
- Renovation Experts: Strategic property upgrades enhance market appeal and sale prices, boosting the Return on Investment (ROI) for investors. Strong partnerships with home renovation experts ensure quality improvements, timely project completion, and cost-effective business-to-business pricing, maximizing property value.
- Property Sale: Maximizing Recovery Value
- Specialized Power of Sale Realtors: Our expert realtor partners leverage their market expertise, broad buyer networks, and effective marketing strategies to achieve optimal property sale prices.
- Loan Loss Reserve (LLR): Your Final Safety Net (Only for MIC)
- Loan Loss Reserve: Hosper MIC maintains a fully funded Loan Loss Reserve—a dedicated emergency fund managed as a final safeguard against unforeseen risks. This reserve absorbs capital losses in the rare event that risks bypass Hosper's multi-layered defenses, ensuring shareholder capital remains unaffected. It is held independently and strictly inaccessible for operational use.
Why Investors Trust Hosper for Capital Protection
At Hosper, safeguarding investor capital is at the core of what we do. Through established processes, experienced partnerships, and comprehensive risk management, we aim to provide peace of mind for both seasoned real estate investors and those new to mortgage investments. Our multi-layered approach focuses on:
- Protecting Capital Integrity
- Minimizing Default Risks
- Supporting Consistent Mortgage Loan Performance
To learn more about our investor-focused services or explore insights into real estate and mortgage investing, visit the Hosper Mortgage Investor Blog or connect with our Investment Service Team for personalized guidance at