Anderson Economic Group Work

Mortgage Wholesaler Valuation Analysis: Law Firm


A Chicago based commercial litigation firm, retained Anderson Eco­nomic Group, LLC as a expert in a matter involving the value of contractual rights to a share of profits earned by a mortgage wholesale operation. Our work was done on behalf of the plaintiff, who was seeking damages for termination of contact.

Our analysis focused on the future cash flow that the mortgage wholesale operation would have generated had the plaintiff been allowed to continue directing the operation. The operation was set up as a unit of a larger bank, and generated income through inter­est earned on its loan portfolio, and by selling loans on the secondary market. To deter­mine the value of this operation we estimated overall loan generation in coming years, taking into account economic and market changes and which loans would be added to the portfolio and which would be sold to the secondary market. Expenses of the operation were also forecasted, allowing us to estimate cash flows for the operation. These cash flows were then discounted to the present day to arrive at the value of the operation.

The findings of our analysis were summarized in an expert report which was used for settlement purposes. Shortly after our report was submitted our client accepted a favor­able settlement offer.