Advisory Services Capabilities

1. Advisory Services Capabilities
Fairway Financial Solutions, LLC
400 E Royal Lane
Suite 290
Irving, TX 75039
972.869.7659
www.fairwayfinancial.net
khannold@fairwayfinancial.net
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2. Company
Fairway Financial Solutions (“Fairway” or “Company”) provides a broad range of advisory services
in the consumer debt and mortgage industries. Financial services clients include creditors,
servicers, portfolio investors, commercial banks, mortgage lenders and other members of the
capital markets.
Fairway has extensive experience as an Accounts Receivable Management (ARM) company, with
its founders having held senior management positions with firms such as Bank of America, HSBC,
JP Morgan Chase, Washington Mutual and GE Capital.
The Company has also provided high-level consulting in the valuation and management of
performing and non-performing real estate portfolios. The company has deep operational
expertise in analytics, process flow development & documentation, business plan development &
implementation and program management.
Fairway utilizes Six Sigma and Lean Principals in the establishment of new processes and skills-
based performance management models to drive employee performance improvements.
The Company has achieved significant results with a proven track record of success. Detailed
project-specific historical performance information is available upon request.
Fairway is incorporated in the State of Texas as a Limited Liability Company with domestic and
offshore facilities to support client engagements.
Fairway Advisory Services Core Capabilities
1) Financial Advisory Services – Financial analysis, valuation, management, sales, and disposition
of a wide variety of assets.
2) Loan Servicing Oversight – Proactively monitor servicer performance with the objective of
improving cash flow, mitigate loss severities and ensure that proper liquidity is maintained over
serviced assets.
3) Due Diligence – Operational audits to review process flows and portfolio analysis to prepare
them for eventual purchase or sale.
4) Operational Assessments – Full scale evaluation of operational efficiency aimed at identifying
gaps, defects and areas of risk. Measurement of the quality and adequacy of output and
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3. assessment of the reliability and predictability of the operation. Full credit cycle expertise in
consumer, single family, multi-family and commercial loan products.
5) Business Plan Development and Implementation – Business plan development, assessment
and implementation that delivers improved cash flow, lower loss rates and expenses. Fairway
works with the management team to ensure all business plan objectives are met.
6) Process Flow Documentation – The Company has had significant experience with documenting
process flow, policies, procedures and training materials.
7) Interim Management Assignments – Fairway can provide on-site executive leadership at the
executive or front-line level. The Company has extensive experience with project and systems
conversion and comprehensive vendor management and oversight.
8) Portfolio Management – Fairway provides full service management of performing and non-
performing loan portfolios that maximizes cash flow and minimizes expenses.
9) Project Management – Prioritization, leadership and delivery of all projects on time and within
budget. Process and practices development and reengineering.
Fairway Recent Engagements
Clayton Holdings / Quantum Servicing, Shelton CT & Tampa, FL – May 2008 to March 2009
Engaged to conduct a full operational assessment of Claytons Mortgage Servicing Business,
develop the business plan to improve cash flow and client service, and implemented and
executed all elements of the plan.
Fairway reengineered Loan Administration, Front End Collections, Closing, Records Center, Loss
Mitigation, Foreclosure and Bankruptcy Processing, REO and Recovery. Additionally, Fairway
moved the 70-person operation from Shelton CT to Tampa FL.
Fairway provided long term interim Senior Vice-President through Team Manager level
leadership. The Company managed new client integration and service delivery and engaged in
hiring, training, performance management, contact management development and vendor
selection and management.
Fairway also managed the oversight and conversion of their combined “home grown” and
outsourced servicing platform to an internally managed Fidelity MSP solution. This initiative was
projected to deliver an expense reduction of $1.7m over the initial five years of service.
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4. Requirements included coordination of test environment, initial small scale concurrent processing
environment, followed by full conversion of the entire portfolio. Establishment of new policies
and procedures were required with new processes previously managed by the outsourced
provider. Negotiation and coordination of enhancements, training activities, and features was
successfully completed by the established target date.
Washington Mutual Retail Bank- April 2007 – March 2008
Fairway was contracted to conduct a full operational assessment on WAMU’s collection
operation in its Retail Bank Demand Deposit Account Group. Fairway reengineered both pre- and
post-charge off collections and managed the operation until a capable internal management
team could take over responsibility.
A full analysis and valuation was done of the existing portfolio post charge off. Fairway facilitated
the sale of over $620 million in receivables in bulk and forward flow deals. A new servicer
network was established and Fairway conducted loan servicing oversight of the network. While
establishing this new network, Fairway negotiated updated contracts with best-in-class fee
structures, reducing agency expenses primary and secondary fees by 16% and 12.6% respectively,
resulting in a post charge off annual cost avoidance of $1.475 million. In addition, liquidation rate
improvements of more than 5% during the initial 6 months of activating the new network
generated additional net revenue of $1.8 million.
Fairway also reengineered the pre-charge off operation and performed oversight activities during
our contract term, eliminating a poor performing vendor and replacing it with an industry leading
1st party vendor. Fairway established new Service Level Agreements with robust minimal call and
lettering events, while improving the pricing structure 18.6% for a monthly expense reduction of
$30,300 against an active monthly placement volume of 17.600 accounts.
Cerberus Capital – GMAC – May 2007 – July 2007
Fairway was asked to assist with the establishment of a preemptive loan modification program.
High risk accounts were identified well in advance of the interest reset date on ARM loans. These
customers were proactively called and a mail marketing initiative was also established.
Cerberus Capital – Aegis Mortgage - March 2007 to May 2007
Fairway was utilized to conduct due diligence on Option One’s collection operation for a potential
sale of this company to Cerberus Capital. A full operation assessment was conducted on its
United States and India operations.
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5. Fairway Principal Corporate Experience
Washington Mutual –
Loan Servicing Management - Washington Mutual Finance –
Mr. Hannold was the senior manager in charge of this WAMU operation, where he managed
Underwriting, Customer service, Payment Processing , Records Management, Early and Late
Stage Collections , Loss Mitigation , Foreclosure, Bankruptcy , Recovery and REO. Portfolios
managed were sub-prime consumer, sales finance, single family and HELOC’s.
Mr. Warden led residential real estate Risk Management and Servicing Operations which included
Bankruptcy, Skip Tracing, Collections, Loss Mitigation, Foreclosure and REO for single family and
HELOC portfolios. He also directed activities to install a performance management framework
throughout the organization.
Loan Servicing Management – Washington Mutual Commercial Real Estate-
Mr. Hannold ran the National operation center in charge of Appraisal, Closing, Escrow, Customer
Service, Payment Processing and Collections. Portfolios serviced were Multi-Family and
Commercial real estate. During Mr. Hannold’s tenure, efficiencies and turn times were
dramatically improved and WAMU received rating improvements from Fitch and S&P.
Mr. Warden built and led Optimization and Support organization designed to support
Commercial’s Closing, Servicing, Portfolio Management and Appraisal operations. Mr. Warden
managed various projects in Quality Assurance Management, Risk/Audit Management, Project
Management Office, Performance Improvement Management, Process Improvement
Management, Operational Excellence (Six-Sigma), Financial Planning, Analysis and Reporting,
Business Continuity, Disaster Recovery, Emergency Response, Facilities Administration
Management, Procedures Writing and Significant Event Management.
Mr. White was Senior Manager, heading up Washington Mutual’s Commercial National
Operations Center (NOC) which included Loan Closing, Servicing, Escrow Management,
Collections, Portfolio Risk Management, Records Retention and Mortgage Banker Finance
operations. The portfolio managed was in excess of $40 billion of Multi-Family, CRE, and MBF
business. Responsible for all day-to-day operations activities with a staff of 283 FTE.
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6. Mr. White, Mr. Hannold and Mr. Warden collectively led initiatives which resulted in improved
ratings by Fitch and S & P, improved OTS audit results, and the historically highest customer
satisfaction scores as measured by J. D. Power’s Voice of the Customer Surveys.
Why Partner with Fairway
 Experience and Expertise – Principals have a combined 80+ years of experience
 Exceptional Industry Reputation
 Proven Track Record – Delivers on Commitments
 Ease of Interaction – No Hassle approach
 Highly Reliable – On Budget , On Time and Results Oriented
 Nimble and Flexible
 Conceived, Developed and Executed Strategies that Drive Bottom Line Results
 Robust Analytics
Principals
Ken Hannold
Mr. Hannold has over 28 years of experience working for companies such as Household
International (Now HSBC), Bank One (now Chase) and Washington Mutual. He has held senior
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7. leadership positions with all of these companies with responsibility for Accounts Receivable
Management, portfolio sales, servicing, collection agency management and collection strategies.
Mr. Hannold also served on the Board of Directors for Consumer Credit Counseling of Washington
D.C.
While at Washington Mutual, Mr. Hannold provided senior leadership oversight for operations in
commercial servicing and credit card collection operations. His leadership led the commercial
servicing and appraisal group to achieve industry-leading efficiency ratios, reducing “cost of
servicing” over a two year period by 40%, (from 2004 to 2006). He established a management
philosophy and culture that led the division to achieve a best-in-class employee retention rate of
88% and a 40% improvement in employee satisfaction.
During his tenure at Bank One Card Services, Mr. Hannold managed the Recovery and Fulfillment
operations, controlling a budget of over $92 million that generated over $400 million net revenue
per year in recoveries. His scope of responsibility spanned multiple collection call centers and
recovery operations as Regional Manager with over 700 employees at three sites. His efforts led
to production and efficiency gains that resulted in a 25% reduction in staffing.
Mr. Hannold executed the largest bad debt sale in March 1999 by selling over $2 billion in
charged off receivables that garnered over $175 million in recoveries. He is uniquely qualified to
lead Fairway Financial Solutions based upon both his multi-decade operational successes and his
proven ability to build large employee-centric organizations.
Fred White
Mr. White spent over 25 years managing credit card receivables with two leading credit card
issuers, Bank One/Chase and Bank of America (formerly InterFirst). Mr. White spent three years
managing Washington Mutual’s commercial loan fulfillment and servicing operation. While there,
he was accountable for servicing its $40 billion commercial loan portfolio, which included all
aspects of loan closing, portfolio management and risk assessment, customer service, and escrow
management. His oversight included a staff of 283 full time employees with a budget in excess of
$32 million. Accolades included leading the operation to achieve upgrades in its ratings from
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8. Fitch and S&P to above average Master Servicer, as well as developing a complete set of
dashboard metrics to monitor all operations effectively.
Prior to Washington Mutual, Mr. White spent more than 15 years at Chase/Bank One Card
Services where he managed several collection operations across the country, embedding ”Skill
Based Management Systems” to manage operations and drive results effectively. He was a key
member of the card groups’ collections design team for developing a proprietary collections
system, spending eight months designing and developing an industry leading system that is still
considered to be a competitive advantage today. In addition, he was responsible for its $9 billion
charge off portfolio with an annual budget of $97 million which included agency fees. During his
tenure there, the operation was running as an industry best, low-cost provider, based on industry
benchmark data provided through Visa’s monthly IRKI report (Industry Risk & Key Indicators).
Other major responsibilities and accomplishments while at Chase include the management of
more than $9 billion in charged off credit card debt, evaluating opportunities and devising
strategies to generate the highest net revenues. Mr. White also negotiated and closed in excess
of 40 debt portfolio sales transactions, totaling more than $7 billion.
Mr. White served as a panelist for several industry forums and has been instrumental in
developing many of Fairway’s proprietary systems to source and manage consumer debt.
Tony Warden
Mr. Warden possesses unique qualifications and experience in the financial services industry
developed during the 23 years he has worked for Discover Card, GE Capital, Bank One (now
Chase), Metris (now HSBC) and Washington Mutual (now Chase).
He has held senior leadership positions with all these companies with core competencies in Asset
Management for Prime/Sub-prime, Retail, Private Label and Business consumer cards,
Commercial and Residential Real Estate Servicing, Loss Mitigation, Default and Collections. Mr.
Warden has background in Six Sigma (GE Black Belt Certified) and Lean Process Reengineering.
Conceiving, developing and executing the strategies and initiatives that drive bottom line results,
continuous operational improvement, employee and customer satisfaction and retention is what
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9. Mr. Warden does best. Throughout his career, in senior leadership positions with diverse
industry leaders, he has earned a track-record of success in managing complex business
initiatives, turnarounds and startups.
Mr. Warden effectively led the transformation of the poorest performing collection operation for
a $10 billion sub-prime issuer, elevating every key performance indicator from 5th place to 1st or
2nd , while driving down annualized employee attrition from 79% to 19%. This occurred with 500
full time employees in two locations. Mr. Warden also led the startup of a collections call center
operation for a premier credit card issuer successfully beating delinquency, loss and expense
plans for a $1.9 billion portfolio.
Mr. Warden plays a critical role in managing the various partners with whom Fairway works.
George Muller
Mr. Muller is the former President and COO of Subaru of America, Inc., where he managed all
day-to-day operations for this multi-billion dollar company. Prior to his role as the top executive
of the company, Mr. Muller also held the positions of CFO, President of Subaru Financial
Services and President of Subaru Foundation.
Mr. Muller is a former principal in a private equity organization and has a very strong financial
and analytical background. Having held numerous Board seats for early stage and mature
enterprises, Mr. Muller’s organizational leadership and guidance is a tremendous asset to
Fairway Financial Solutions.
Glenn Goldberg
Glenn Goldberg is a seasoned marketing and business development executive with experience
that spans several industries, including financial services, mortgage banking, computer software
& hardware, e-commerce, telecommunications, retail and adult beverages.
Mr. Goldberg was the Chief Marketing Officer for Freedom Mortgage, one of the country’s largest
independent originating & servicing platforms. He was in charge of a multi-billion dollar portfolio
retention program and helped design workflow procedures which positively impacted retail,
wholesale and branch operations. More recently, Mr. Goldberg designed and implemented a
streamlined loan origination process using online loan pricing & eligibility determination software
to quickly and cost-effectively grow the business.
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10. Prior to his work in the mortgage industry, Mr. Goldberg co-founded an early stage technology
company and held senior positions at Anheuser Busch and Grey Advertising.
References and Testimonials
Clayton Holdings:
Conrad Vasquez – EVP Operations
203.926.5788, cvasquez@clayton.com
Washington Mutual Retail Bank:
Conrad Vasquez – EVP Operations
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11. 203.926.5788, cvasquez@clayton.com
Cerberus and Washington Mutual Finance
Dan Gilbert – President
813.335.6513, daniel@lifestylemortgageservices.net
Ken Hannold worked for me with Washington Mutual Financial Services as our Senior Executive for our Servicing
Operation. His knowledge, understanding and ability to build an excellent management team were superior. He
developed measurements for the business and he was instrumental in developing new processes which increase our
efficiency and productivity. He has strong communication skills and he was very proactive to look for business
solutions for business problems. His efforts help enable us to sell our business for a 400 million dollar profit. Without
a doubt, if I ever need help, advice or the opportunity to work with Ken, I would jump at the opportunity. Without a
doubt, a first class operator.
Dan Gilbert
Cerberus Capital
Mark Hillis – Risk Management
206.719.5227, mark.hillis@yahoo.com
Contact Information
Ken Hannold
972.869.7659
khannold@Fairwayfinancial.net
Fred White
972.869.7660
fwhite@fairwayfinancial.net
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12. Tony Warden
682.667.9698
awarden@fairwayfinancial.net
George Muller
856.216.7295
gmuller@fairwayfinancial.net
Glenn Goldberg
856.216.7297
ggoldberg@fairwayfinancial.net
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