Harbor Group’s philosophy is that every loan can be closed and funded, with the financial lending institution protected and intended execution preserved, while helping to avoid loss of relationship capital and unnecessary premium increases for the borrower.
We have a clear understanding of the primary goal of our clients’ business and understanding what is important to them– originating risk-averse, marketable and profitable loans – and the role of insurance, if applied correctly, in supporting that goal. As partners to the deal team, we provide diligence expertise, analyzing each transaction holistically for the most effective coverage solution, while keeping the economics favorable to both parties and loan competitive with market standards.
We view risk as multi-faceted, with insurance being one factor to consider when devising a solution. Team members approach each deal with a focus on and expertise in insurance, while identifying other available risk mitigants and appropriate insurance coverage. We also recognize the deadline-driven nature of those transactions, so we help make the complexities of insurance more understandable, keep pace with the deal and close loans efficiency and on time.
We advise on deals of all types and sizes, and serve clients within and outside the real-estate sector around the world, applying proprietary methodologies, analytical frameworks, insurance expertise and credit-market knowledge. Our holistic approach includes an in-depth and long-range review and analysis of each deal, ensuring that client needs and priorities are fully met, without unnecessary coverage increases for borrowers. The result is a 100% client-retention rate – and value that extends to both clients and their borrowers.
For commercial mortgage backed securities transactions, we offer counsel on traditional insurance provided by carriers with financial ratings from Standard & Poor’s, Moody’s, Fitch and AM Best as well as self-insured coverage and captive insurance companies. We also ensure that client interests are protected in the insurance policies and collateral, and underlying assets are properly insured and the debt is marketable. Our approach preserves clients’ ability to securitize or syndicate the loan, and we work regularly with rating agencies and investors to support our findings.
For balance sheet and syndicated transactions, we understand the specific internal risks as well as our deep understanding of the syndications process and the constituents involved.
In the agency-lending space, we have built direct relationships with government agencies that allow us to help streamline the insurance-review process for clients. We understand agencies’ risk appetite, and prepare waivers and exceptions that allow lending clients to efficiently close loans on time.
Built on a platform of sound research, proprietary resources and market expertise, every client recommendation has been fully accepted by the marketplace. Our methodologies help achieve the most favorable outcomes, always keeping the protection and optimization of clients’ collateral as the first priority.
Harbor Group Consulting was created after recognizing the need for expertise within financial institutions' lending process relative to insurance risk.
Harbor provides insurance expertise, coverage analysis and solutions within the loan underwriting process that was significantly underserved.
General Motors Acceptance Corporation (GMAC) retained Harbor as its exclusive insurance consulting firm within its commercial lending platform.
Harbor assisted in the creation of insurance standards for the CMBS lending markets.
Harbor was invited to participate in rating agency discussions and continued evolving insurance standards for CMBS deal structures.
Harbor expanded to the European market and advised GMAC on the first CMBS loan ever closed in Europe.
Harbor Principals were invited to speak at the S&P CMBS Forum.
Harbor was the lead consultant to GMAC for the World Trade Center placement prior to 9/11, at the time the largest CMBS loan originated, as a result of Harbor’s efforts the lender was paid in full with respect to their financing.
Harbor Principals spoke at a Fitch Ratings Forum regarding insurance issues in the CMBS market.
Harbor’s deal volume exceeded 5000 loans per year.
Harbor continued its growth expanding its Government-Sponsored Enterprise (GSE) insurance risk platform.
Harbor was the lead insurance consultant as Goldman Sachs led the financing of equity office properties, the largest real estate financing ever transacted.
Blackstone acquired Hilton, Bear Stearns retained Harbor as consultant for the lending group on the transaction.
Apollo acquired Harrah’s in a $29 billion deal, Harbor acted as insurance consultant for the transaction on behalf of JP Morgan.
Harbor was retained as the consultant on the first commercial financing deal with the US Federal Reserve and Goldman Sachs in the depths of the financial crisis.
An in-house insurance tracking division was created after signing an agreement with GE Capital. This division was designed for lenders and servicers who did not have the internal resources or expertise to monitor insurance renewals and tracking all insurance exposure or renewal changes.
Harbor experienced significant growth in Agency Lending insurance reviews.
Harbor continued to innovate the market for banks, lenders and financial institutions in contributing to enhancements to many of the Commercial Mortgage Backed Securities (CMBS) 2.0 reps and insurance requirements for all industry classes in a post crises environment.
Harbor began providing Leveraged & Corporate Financing advisory services. Clients included GE Capital, who hired Harbor as its primary insurance consultant on all their leveraged financing business.
Harbor created new internal risk catastrophic teams to manage large, stand-alone securitizations and expanded its Balance Sheet insurance consulting teams.
The New York office expanded to accommodate a larger team specializing in GSE insurance review.
Harbor's Miami office relocated to a larger office to accommodate the firm’s growth.
Harbor created a Global Construction Practice to service its construction lending clients including hiring senior industry professionals.
Harbor launched Harbor Analytics, a new platform combining exclusive data & proprietary methodology for assessing risk.
An additional office was opened in New Jersey, led by senior insurance professionals.
Harbor expanded with new teams in Atlanta, Georgia.
Harbor received an equity investment from funds managed by Stone Point Capital.
Harbor acquired Jensen Insurance Solutions, a west-coast based leading provider of insurance due diligence and risk management services for lenders and equity partners. The growth continued with new offices in San Francisco, CA and new team members in Boston, MA.
The firm hires additional talent adding Los Angeles, California as a new outpost.
Trillion In Deals
Years of Experience
Domestic & International Clients
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If you are interested in learning more about the full range of our risk advisory services and career opportunities, we look forward to discussing how we might be able to work together.Contact Us