GS Mortgage-Backed Securities Trust 2022-LTV1 ABS-15G
Exhibit 99.1 - Schedule 1
EXECUTIVE
SUMMARY
Third Party Due Diligence Review
Overview
Consolidated Analytics, Inc (“Consolidated
Analytics”) performed certain due diligence services (the “Review”) described below on newly originated residential
mortgage loans which were acquired by Goldman Sachs Mortgage Company, through a bulk purchase. The Review
was conducted from July 2021 through September 2021 on mortgage loans originated between July 2021 through August 2021.
Scope of Review
Credit Review
Consolidated Analytics performed a “Credit
Review” to verify compliance with guidelines in effect at the time of loan origination, or other guidelines provided by Client prior
to review, and ensure the characteristics used by the underwriter are supported by the file documentation; and determine whether any loans
outside of those guidelines contain legitimate and approved exceptions with compensating factors.
The Credit Review attempted to confirm the
following:
| a. | QM or ATR Validation / Review of 8 Key Underwriting Factors |
| · | Validate borrower(s) monthly gross income |
| · | Validate funds required to close, required reserves |
| · | Review file documentation for required level of income and asset verifications |
| · | Review file documentation for required level of employment |
| iii. | Monthly Mortgage Payment |
| · | Confirm program, qualifying rate, terms |
| · | Validate all concurrent loans are included in the DTI to properly assess the ability to repay |
| v. | Mortgage Related Obligations: PITI, HOA, PMI, etc. |
| · | Validate subject loan monthly payment (PITI) and associated obligations |
| · | Validate monthly recurring liabilities |
| vii. | DTI and/or Residual Income |
| · | Validate debt-to-income ratio (DTI) based upon income and debt documentation provided in the file |
| · | Documentation meets Appendix Q requirements for QM Loans |
| · | Review credit report for credit history and required credit depth including any / all inquiries |
| · | Determine representative credit score from credit report |
| b. | Validate loan-to-value (LTV) and combined loan-to-value |
| c. | Review borrower's occupancy |
| d. | Validation through third party resource of the subject properties most recent twelve (12) month sales
history |
| e. | Confirm sufficient evidence in loan file, by reviewing the underwriter’s decision to approve the
loan based upon the borrows income, debt, and credit history, to support borrower's willingness and ability to repay the debt |
| f. | Confirm that Final 1003 is sufficiently completed |
| g. | Provide Audit 1008 with accurate data based on file documentation |
| h. | Confirm Loan Approval conditions were met |
| i. | Review condominium questionnaire to verify all information is complete, prepared by an authorized representative,
and address any red flags that may deem condominium project ineligible |
Compliance Review
Consolidated Analytics performed a “Compliance
Review” to determine, as applicable, to the extent possible and subject to the caveats below, whether the loan complies with applicable
regulatory requirements as noted below, each as amended, restated and/or replaced from time to time. The Compliance Review included the
following:
| a. | Test Loan Estimate(s) for accuracy and completeness as well as timing requirements as required by TRID
Regulations |
| b. | Test Closing Disclosure(s) for accuracy and completeness as well as timing requirements as required by
TRID Regulations |
| i. | Compare Loan Estimate and Closing Disclosures |
| ii. | Identify Tolerance Violations and applicable cost to cure |
| d. | Comprehensive review of Closing Disclosure to determine transaction accuracy |
| e. | Recalculation of APR and Finance Charge |
| i. | Federal High Cost Mortgage provisions |
| ii. | Federal Higher Priced Mortgage Loans provisions |
| iii. | Local and/or State Anti-predatory and High Cost provisions |
| g. | Determine whether specified federal disclosures were provided timely based upon comparison of the application
date to the dates on such disclosures |
| ii. | Home Ownership Counselling Disclosure |
| h. | Compliance with QM as it relates to: |
| iii. | Prepayment Penalty Test |
| iv. | Product Eligibility Testing |
| i. | Notice of Right to Cancel (Rescission) Review |
| i. | Confirm transaction date, expiration date, and disbursement date |
| ii. | Confirm document is properly executed by all required parties to the transaction |
| iii. | Confirm the correct Right of Rescission document was executed for the transaction
type |
| j. | Confirm through NMLS the loan originator and originating firm's license status was active and properly
disclosed on appropriate loan documents |
| k. | Check the Loan participants against the exclusionary list provided by Client or by the purchaser of the
Loan(s) |
| l. | Review closing documents to ensure that the Mortgage Loan information is complete, accurate, and consistent
with other documents; Confirm collateral documents have been recorded or sent for recording |
The Compliance Review did not include any federal,
state or local laws, constitutional provisions, regulations or ordinances that are not expressly enumerated above. Furthermore, the findings
reached by Consolidated Analytics are dependent upon its receiving complete and accurate data regarding the loans from loan originators
and other third parties upon which Consolidated Analytics is relying in reaching such findings.
Valuation Review
Consolidated Analytics performed a “Valuation
Review,” which included the following:
| a. | Review original appraisal, determination that property is in "average" condition or better,
or property requires cosmetic improvements (as defined by the appraiser) that do not affect habitability. Should an area of concern be
identified with the condition of the property, Consolidated Analytics will alert Client. |
| b. | Review appraisal, determination that property is completely constructed and appraisal is on an “as
is basis,” or property is identified as not completely constructed by originating appraiser. |
| c. | Review and determine if the appraisal report was performed on appropriate GSE forms and if the appraiser
indicated in the body of the subject appraisal that the appraisal conforms to USPAP standards. |
| d. | Review and determine the relevance of the comparable properties and ensure that a rational and reliable
value was provided and supported as of the effective date of the Origination Appraisal. |
| e. | Review adjustments (line item, net and gross adjustments) to ensure they are reasonable. |
| f. | Ensure that the appraisal conforms to the guidelines provided from the Client. |
| g. | Review appraisal to ensure all required documents were included. |
| h. | Review location map provided within the appraisal for external obsolescence. |
| i. | Ensure highest and best use and zoning complies with guidelines. |
| j. | Confirm there are no marketability issues that affect the subject property. |
| k. | Ensure subject property does not suffer any functional obsolescence. |
| l. | Where applicable, determine if the file did not contain the appraisal or other valuation method and a
review could not be performed. |
| m. | Additional valuation products were not required when the CU score provided was below 2.5. In the event
the CU score was equal to or greater than 2.5, an additional valuation product was obtained to confirm value was supported within 10%
tolerance. In some instances, CDA’s were ordered on loans that had an acceptable CU score based on guidance from the seller. |
Consolidated Analytics applied a cascade methodology
to determine if the original appraised value was reasonably supported when compared to an independent third party valuation product.
For loans reviewed in a post-close valuation
review scenario (18 loans in total):
18 loans had Desktop Reviews (CDA’s).
If a loan with a Desktop Review fell outside
of a -10% tolerance, was inconclusive, or a PIW was present, then a Field Review, a Broker Price Opinion (BPO) along with a Reconciliation
of the values or a 2nd Appraisal was completed.
Zero loans within the population had a Field
Review.
TAPE INTEGRITY REVIEW RESULTS SUMMARY
Of the 18 mortgage loans reviewed, 5 unique
mortgage loans (27.78% by loan count) had a total of seven (7) different tape discrepancies across 2 data fields. A blank or zero value
on the data tape when an actual value was captured by Consolidated Analytics was not treated as a data variance.
| Field Name |
Number of Discrepancies |
Percentage |
| Property Type |
4 |
57.14% |
| Closing Date |
3 |
42.86% |
| Total Discrepancies |
7 |
100% |
Summary of Results
OVERALL RESULTS SUMMARY
After giving consideration to the grading criteria
of the relevant NRSROs, 100% of the loans received an overall grade “A”.
Final Loan Grades
| Overall Loan Results: |
|
| Event Grade |
Loan Count |
Original Principal Balance |
Percent of Sample |
| Event Grade A |
18 |
$15,148,691.00 |
100% |
| Event Grade B |
0 |
$0.00 |
0% |
| Event Grade C |
0 |
$0.00 |
0% |
| Event Grade D |
0 |
$0.00 |
0% |
| Total Sample |
18 |
$15,148,691.00 |
100% |
| Credit Results: |
| Event Grade |
Loan Count |
Percent of Sample |
| Event Grade A |
18 |
100% |
| Event Grade B |
0 |
0% |
| Event Grade C |
0 |
0% |
| Event Grade D |
0 |
0% |
| Total Sample |
18 |
100% |
| Compliance Results: |
| Event Grade |
Loan Count |
Percent of Sample |
| Event Grade A |
18 |
100% |
| Event Grade B |
0 |
0% |
| Event Grade C |
0 |
0% |
| Event Grade D |
0 |
0% |
| Total Sample |
18 |
100% |
| Valuation Results: |
| Event Grade |
Loan Count |
Percent of Sample |
| Event Grade A |
18 |
100% |
| Event Grade B |
0 |
0% |
| Event Grade C |
0 |
0% |
| Event Grade D |
0 |
0% |
| Total Sample |
18 |
100% |
Exception Category Summary
The table below summarizes the individual exceptions which carried an associated
“A”, “B”, “C”, or “D” level exception grade. One loan may have carried more than one exception.
In such cases, the exception with the lowest grade would drive the loan grade for that particular area of the review. The overall loan
grade is the lowest grade for any one particular review scope (ex. a loan with a Compliance Grade of “B”, a Credit Grade of
“A”, and a Property Grade of “A” would receive an overall Loan Grade of “B”).
| Exception Type |
Exception Level Grade |
Exception Category |
Total |
| Credit |
A |
No Credit Findings |
12 |
| Title Policy is Missing |
1 |
| Hazard Insurance Effective Date is after the Note Date |
1 |
| Total Credit Grade (A) Exceptions: |
14 |
| Compliance |
A |
No Compliance Findings |
12 |
| Regulation §1026.43(e)(2)(vi) failure - The Qualified Mortgage calculated DTI is greater than 43.00%. |
2 |
| Escrow Waiver Disclosure is Missing |
2 |
| Charges That Cannot Increase Test |
2 |
| Lender Credits That Cannot Decrease Test |
1 |
| Home loan Toolkit is Missing |
1 |
| Total Compliance Grade (A) Exceptions: |
20 |
| Property |
A |
UCDP Summary Report is Missing |
6 |
| Third Party Valuation Product not Provided |
1 |
| Third Party Valuation Product Not Provided and CU Score is Greater Than 2.5 |
1 |
| Total Property Grade (A) Exceptions: |
8 |
Event Grade Definitions
| Final Loan Grade |
| A |
Loan meets Credit, Compliance, and Valuation Guidelines |
| B |
The loan substantially meets published Client/Seller guidelines and/or eligibility in the validation of income, assets, or credit, is in material compliance with all applicable laws and regulations, and the value and valuation methodology is supported and substantially meets published guidelines. |
| C |
The loan does not meet the published guidelines and/or violates one material law or regulation, and/or the value and valuation methodology is not supported or did not meet published guidelines. |
| D |
Loan is missing documentation to perform a sufficient review. |
| Credit Event Grades |
| A |
The loan meets the published guidelines without any exceptions. The employment, income, assets and occupancy are supported and justifiable. The borrower’s willingness and ability to repay the loan is documented and reasonable. |
| B |
The loan substantially meets the published guidelines but reasonable compensating factors were considered and documented for exceeding published guidelines. The employment, income, assets and occupancy are supported and justifiable. The borrower’s willingness and ability to repay the loan is documented and reasonable. |
| C |
The loan does not substantially meet the published guidelines. There are not sufficient compensating factors that justify exceeding the published guidelines. The employment, income, assets or occupancy are not supported and justifiable. The borrower’s willingness and ability to repay the loan were not documented or are unreasonable. |
| D |
There was not sufficient documentation to perform a review or the credit file was not furnished. |
| Compliance Event Grades |
| A |
The loan is in compliance with all applicable laws and regulations. The legal documents accurately reflect the agreed upon loan terms and are executed by all applicable parties. |
| B |
The loan is in material compliance with all applicable laws and regulations. The legal documents accurately reflect the agreed upon loan terms and are executed by all applicable parties. Client review required. |
| C |
The loan violates one material law or regulation. The material disclosures are absent or the legal documents do not accurately reflect the agreed upon loan terms or all required applicants did not execute the documents. |
| D |
There was not sufficient documentation to perform a review or the required legal documents were not furnished. |
| Valuation Event Grades |
| A |
The value is supported within 10% of the original appraisal by the AVM or there are other supporting documents in the originators loan file package (CDA, Field Review or Second Appraisal). The appraisal was performed on an "as-is" basis and the property is complete and habitable at origination. The appraiser was appropriately licensed and used GSE approved forms. |
| B |
The value is not supported within 10% of the original appraisal by the AVM and there are no other valuation support documents in the loan file provided by the Seller. The valuation methodology substantially meets the published guidelines but reasonable compensating factors were considered and documented for exceeding guidelines. The appraisal was performed on an "as-is" basis and the property is complete and habitable. The appraiser was appropriately licensed and used GSE approved forms. |
| C |
The value is not supported within 10% of the original appraisal. The valuation methodology did not meet the published guidelines and there were not sufficient compensating factors for exceeding published guidelines. The property is in below “average” condition or the property is not complete or requires significant repairs. The appraisal was not performed on an “as is” basis. The appraiser was not appropriately licensed or did not use GSE approved forms. |
| D |
The file was missing the appraisal or there was not sufficient valuation documentation to perform a review. |