SERVICES

A SOLUTION FOR EVERY NEED

Master Servicing

HiTo's Master Servicing is a service that supervises and verifies the roles of the participants in financial structures, providing certainty and value to the investor via an independent replica of the servicing and collection processes of the loan portfolio.

In addition, the integral compliance of the different enhancements of the structures, such as triggers and reserves, is calculated and verified.

  • HiTo supervises the originator in terms of compliance with the portfolio's eligibility criteria and its assignment to the trust.
  • Supervises the primary portfolio manager in terms of file control, payments, balances, insurance, guarantees, recoveries and operating systems associated with the trust's portfolio.
  • Oversees the interests of investors/trustees by supervising contractual compliance with the cashflow distribution, calculation of capacity, portfolio eligibility, investment of resources, and payment to investors.
  • Depending on the structure, HiTo will prepare the supervised portfolio's Financial Statements and Regulatory Reports.

Primary Servicing

This refers to a group of services that include comprehensive management with each of the creditors and the internal processes involved in the loan servicing. 

The servicing includes call center, Statement of Account generation, clarifications, the release of loan guarantees, court proceedings, and sale of immovable property, among others.

For portfolio investors, HiTO generates regulatory reports, collection reports, cashflows, reserves, financial statements, and the use of artificial intelligence to improve the collection, among others.

  • Integration, completion, control, and safekeeping of credit files.
  • Expiration monitoring and loan insurance update.
  • Interest calculation and loan amortization tables.
  • Verification and reconciliation of collections received.
  • Report updates to the Authorities on the status and balance of the loans.
  • Identification of non-performing loans and implementation of ordinary, extraordinary and judicial collection actions, optimizing the present value of the cash flows to be recovered.
  • Account statement issuance and proof of interest payment.
  • Release of liens for liquidated loans.

Structuring

HiTO provides a variety of portfolio structuring options tailored to both lenders’ needs and investors’ security and performance requirements. HiTO listens to the client's needs and weighs them against its own projections, financial, legal, regulatory, accounting and tax analyses to arrive at the optimal form or structure of the issuance, complying with several due phases of diligence.

For lenders:

  • Managing liquid collateral and in portfolio scheme.
  • Release of residual resources to the originator at each coupon cutoff.
  • Savings from the amortization of issuance through the repurchase of bonds issued in the secondary market.
  • Manage reopening of issuance schemes to achieve higher outstanding balances to facilitate the secondary market.
  • Continuous monitoring of issuance behavior to identify needs and opportunities to improve performance.


For investors:

  • Higher returns, compared to other issuances.
  • Increased accuracy in the cash flows to be received at each coupon cutoff and in the valuation of their prices.
  • Short-term support with available resources to provide liquidity in the event that the price of their bonds falls below par.
  • Higher issued amounts, due to the reopening scheme.
  • Recovery mechanisms to offset impairments in the capacity levels of bond issues.
  • Innovative, extensive information and analysis systems on the performance of stock market issuances.
  • Valuation of residual certificates.

Consulting Services

HiTo's consulting services offer diagnosis, analysis and evaluation of alternatives to improve the customer's products and services, from their design to their final implementation.

  • Profitability analysis and financial products redesign to improve financial margins.
  • Infrastructure design to operate the loan product and its financing.
  • Loan operation platform implementation.
  • Improvement proposals for financing mechanisms.
  • Restructuring implementation and performance monitoring.

Backup Servicing

HiTO, as a Backup Servicer, takes over key functions (mainly collections and loan administration) for assets or accounts receivable portfolios. HiTO receives and analyzes portfolio data regularly, preparing to take over primary servicer duties in case of a triggering event (such as the default of existing servicer or insolvency of the servicer/originator).

The functions of a Backup Servicer can be classified into three temperatures depending on the activities to perform and the level of Backup required for the portfolio:

  • Cold Backup Servicer: Portfolio data storage originated by the Primary Servicer on independent and periodically updated systems. Loan and repayment data is updated infrequently, and it may take several months for the Backup servicer to take over servicing duties from the primary servicer.
  • Warm Backup Servicer: Portfolio data processing/payment application by HiTO on independent and updated systems according to the amortization schedule payment. Monthly reports on cash flow validation and bank reconciliation. It may take 3-4 months for the Backup servicer to take over servicing duties from the primary servicer.
  • Hot Backup Servicer: Receive, monitor, and validate the progress of strategic collection actions. Operational transfer of functions plan. HiTO can take over servicing duties from the primary servicer briefly.

Comprehensive solutions tailored to the local and international financial market needs.

The exact conditions of HiTO’s model depend on various factors, therefore, everything expressed in this website does not represent a specific offer and it exclusively communicates to illustrate HiTO’s model. All information contained in this website can change without previous notice.

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