Houston Community College Rosetree Opportunity Qualitative Analysis Report PAPER REQUIREMENTS -The report should be written in MLA format and be MINIMUM 4-

Houston Community College Rosetree Opportunity Qualitative Analysis Report PAPER REQUIREMENTS -The report should be written in MLA format and be MINIMUM 4-5 pages in length (doubledspace) excluding exhibits- please provide exhibits when needed- please view attached instructions on how to complete the case. Rosetree Mortgage Opportunity Fund
Instructions and Expectations
1. From the perspective of Isabel Villegas, write a professionalreport that addresses the
questionslisted below. Your objective is to convince your peers who will play the role of
stakeholders of the Rosetree Mortgage Opportunity Fundto follow your recommendationon a
bid for delinquent whole mortgage loans
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ANALYSIS
RECOMMENDATION
EXHIBITS
Discussion Questions
Qualitative Analysis:Why is the $65 million loan portfolio an interesting investment?
a. Discuss the market conditions and why might the current owner of the pool be
willing to sell the loans to Rosetree?
b. Summarize the loan portfolio in terms of the loan attributes (e.g., loan type,
contract rates, LTV) and borrower characteristics (e.g., credit score).
Quantitative Analysis: What is the loan portfolio’s fair market value?
c. Hint: calculate the expected value (NPV and IRR) Roestree can obtain for in each
state (i.e., slow economic growth, moderate recession, severe recession, and sever
recession with loan renegotiation). Exhibits 5 and 6 provide the Rosetreeloan
portfolio cash flow projections under the different states.
Recommendation
d. How much should Rosetree bid?
e. Explain why this bid shouldwin while also maximize Roestree’sreturn.
Late submissions of the written report will not be accepted.

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