Visio 2026-2 Trust ABS 15G

Exhibit 99.2

 

 

EXECUTIVE SUMMARY
Third Party Due Diligence Review

 

Overview

 

Digital Risk, LLC (“Digital Risk”), a third party due diligence provider, performed the review described below on behalf of its client, Visio-Beach Point Mortgage Trust, LLC. The review included a of 487 residential mortgage loans, in connection with the securitization identified as Visio 2026-2 (the “Securitization”). The review began on October 5, 2022, and concluded on November 8, 2024.

 

The third-party due diligence services are intended to generally comply with currently known rating agency criteria for newly originated mortgage loans.

 

Identity of NRSRO Title and Date of Criteria
S&P Global Ratings

Global Methodology And Assumptions: Assessing Pools Of Residential Loans, Jan. 25, 2019

Global Methodology And Assumptions: Assessing Pools Of Residential Loans—U.S. And Canada Supplement, Feb 21, 2025

 

Previously Performed Due Diligence

 

Digital Risk previously performed certain due diligence services (the “Previous Review”) with respect to 481 loans (the “Previously Reviewed Loans”) that are included in the current Securitization and that were previously included in prior securitization transactions referred to as Visio 2023-1 and Visio 2023-2. Information with respect to the Previously Reviewed Loans can be found in (i) Exhibit 99.2 in the Form ABS 15G filed by Visio 2023-1 Depositor LLC on March 8, 2023 (Accession Number: 0001387131-23-003019) and in Exhibit 99.1 in the Form ABS 15G filed by Visio 2023-2 Depositor LLC on August 15, 2023 (Accession Number: 0001387131-23-009862). The Digital Risk Loan ID# for each of the Previously Reviewed Loans can be found on pages 7 and 8 of this document.

  

Scope of Review

 

Credit Review

 

Digital Risk 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.Review Initial & Final Application

 

a.Check application for completeness. Determine whether the information in the preliminary Loan application, final application, and all credit documents is consistent.
b.Validate Social Security/Taxpayer Identification number is valid
c.Compare data on final form 1003 with the data from verifications
d.Form is Complete, Signed, Dated, on or before loan consummation date,

 

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b.Review Approval Conditions

 

a.Underwriting decision is supported (manual underwrite credit conditions have been satisfied prior to closing the approved Loan package)
b.Validation of assets/funds to close
c.Validation of DSCR or qualification method and LTV calculations

 

c.Review Occupancy/Red Flags

 

a.Occupancy is supported
b.Occupancy Red Flags adequately addressed

 

d.Verification of Borrower Original and Audit Credit Report

 

a.Validate names, social security number(s), and addresses
b.AKA’s investigated and cleared
c.Acceptable credit history and credit score requirements in conformance with applicable guidelines

 

e.Verification of Borrower Asset Information

 

a.Income
i.lease agreement or market survey for rental income
b.Assets
i.Confirm adequate funds to cover required down payment and closing costs and reserves
ii.Check dates for document expiration

 

f.Review Sales Contract

 

a.Complete and executed
b.Earnest Money Deposit verified
c.Parties are consistent
d.Seller contributions are within guidelines

 

g.Hazard and Flood (if applicable)

 

a.Verify sufficient coverage
b.Verify coverage is for subject
c.Validate all premiums are included in DSCR and any required upfront premium is paid

 

h.Review Title Commitment/Policy

 

a.Vesting correct
b.Lien position
c.Legal description
d.Validate no encumbrances

 

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i.Review Closing Documents.

 

a.Review security documents to ensure the Loan was closed in accordance with approval and with all required signatures
b.Correct and complete instruments
c.Review Settlement Statement
d.Right to Cancel (if applicable)

 

Compliance Review

 

Digital Risk 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.Federal Truth in Lending Act (“TILA”), as implemented by Regulation Z, 12 C.F.R. Part 1026, as set forth below (for applicable Owner Occupied Properties):
a.Failure to provide the right of rescission notice;
b.failure to provide the right of rescission notice in a timely manner and to the correct consumer(s);
c.errors in the right of rescission notice;
d.failure to provide the correct form of right of rescission notice;
e.failure to provide the three (3) business day rescission period; and
f.any material disclosure violation on a rescindable loan that gives rise to the right of rescission under TILA, which means the required disclosures of the annual percentage rate, the finance charge, the amount financed, the total of payments, the payment schedule, the HOEPA disclosures;

 

b.TILA (for applicable Owner Occupied Properties)

a.Higher-priced Mortgage Loan (§1026.35):

i.APR threshold test; and

ii.Compliance with the escrow account and appraisal requirements.

 

c.Business Purpose Loan Compliance Review

a.Non-Owner Occupied Declaration Disclosure

i.Verify reflects correct address

ii.Verify application address is different from subject property

iii.Verify executed by all borrowers

b.Review Note accuracy and properly executed

c.Review Mortgage and applicable riders for accuracy and properly executed

d.Occupancy Letter (must state that borrower(s) will not reside in the property for more than 14 days on any calendar year, and be acknowledged by the consumer).

e.HMDA section (Information for Government Monitoring Purposes) of the application (initial and/or final)

f.If property is in a flood zone, Flood Notice must be provided prior to closing

g.Right to Receive Copy of Appraisal or Appraisal Waiver Disclosure

h.Letter of Explanation detailing the use of proceeds.

i.Borrower's statement of purpose for the loan.

j.State License requirements when applicable

k.State Predatory lending and high cost when applicable

 

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d.Exclusions. Digital Risk reviews do not test for:
a.Technical formatting of disclosures.
b.Other Post-consummation disclosures, including Escrow Closing Notice; and Mortgage servicing transfer and partial payment notices.
c.For Loans made by an FDIC-supervised institution or servicer, extended or renewed on or after January 1, 2016, whether prohibited fees were collected prior to the initial LE being issued
d.Whether any fee is a “bona fide” fee for third-party services
e.Whether the loans comply with all federal, state or local laws, constitutional provisions, regulations or ordinances that are not expressly enumerated above.

 

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 Digital Risk are dependent upon its receiving complete and accurate data regarding the loans from loan originators and other third parties upon which Digital Risk is relying in reaching such findings.

 

Valuation Review

 

Digital Risk performed a “Valuation Review,” which included the following:

 

a.Review Appraisal

 

b.Digital Risk’s review will include a review of the valuation materials utilized during the origination of the loan and in confirming the value of the underlying property. Digital Risk’s review will include verifying the appraisal report:

 

c.On the appropriate appraisal form:

 

a.All elements of appraisal are present
b.Ensure all applicable Loan documents match appraisal information
c.Property is acceptable collateral for Loan program
d.Completed by an appraiser that was actively licensed to perform the valuation
e.Completed such that the named client on the appraisal report is the lender or a related entity that is permitted to engage the lender per Title XI of FIRREA, or if the appraisal was performed for another lender, the file contains evidence that Client approved use of that appraisal
f.The original appraisal report is made and signed prior to the final approval of the closing of the loan. Any revisions, if made known to Digital Risk, to the original report are documented and dated completed and dated within the guideline’s restrictions,
g.The original appraisal is ‘As is' or Inspection received including all inspections, licenses, and certificates (including certificates of occupancy) to be made or issued with respect to all occupied portions of the mortgaged property and with respect to the use and occupancy of the same, have been made or obtained from the appropriate authorities.
h.Determine whether the appraised value is supported at or within 10% variance based on a third-party valuation product. If a third-party valuation product is in file, but notes a variance above 10% or an inconclusive value, Digital Risk will review third-party products in the file to ensure the correct value was applied per Client Guidelines
i.With regard to the use of comparable properties, Digital Risk’s review will (a) review the relative comparable data (gross and net adjustments, sale dates and distance from subject property) and ensure that such comparable properties are within standard appraisal guidelines; (b) confirm the property value and square footage of the subject property was bracketed by comparable properties, (c verify that comparable properties used are similar in size, style, and location to the subject, and (d) check for the reasonableness of adjustments when reconciling value between the subject property and comparable properties.

 

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j.Other aspects of Digital Risk’s review include (i) verifying that the address matched the mortgage note, ((ii) if requested, noting whether the property zip code was declared a FEMA disaster area after the valuation date and notifying the Client of same, (iii) confirming the appraisal report does not include any apparent environmental problems, (iv) confirming the appraisal notes the current use of the property is legal or legal non-conforming (grandfathered), (v) reviewing pictures to ensure (a) that the property is in average or better condition and any repairs are noted where required and (b) that the subject property is the one for which the valuation was ordered and that if there are negative external factors, there is support in the loan file of the Client’s approval to waive the factor; and (vi) confirming that the value product that was used as part of the origination decision conforms with rating agency requirements.

 

d.If more than one valuation was provided, Digital Risk will confirm consistency among the valuation products and if there are discrepancies that could not be resolved, Digital Risk will create an exception and work with the client on the next steps which may include ordering of additional valuation products such as collateral desktop analyses, broker’s price opinions, and full appraisals. If the property valuation products included in Digital Risk’s review result in a variance of more than 10% then the client will be notified of such variance.

 

e.Digital Risk will confirm to the extent possible, that the appraiser and the appraisal made by such appraiser both satisfied the requirements of Title XI of FIRREA. Specifically, Digital Risk will review the appraisal for conformity to industry standards, including ensuring the appraisal was complete, that the comparable properties and adjustments were documented and that pictures were provided and were accurate.

 

f.In addition, Digital Risk will access the ASC database to verify that the appraiser, and if applicable the appraiser’s supervisor, were licensed and in good standing at the time the appraisal was completed.

 

Data Discrepancy Report

 

As part of the Credit and Compliance Reviews, Digital Risk captured data from the source documents and compared it to a data tape provided by Client. Digital Risk provided Client a Data Discrepancy Report which shows the differences between the tape data and the data captured by Digital Risk during the diligence process. Tape values that are blank indicate that the data was not provided on the provided data tape but Digital Risk captured it during the review. The table below reflects the discrepancies inclusive of the blank data fields:

 

Fields Reviewed Count Percentage
Total Cash Reserves 1 16.67%

 

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Summary of Results

 

Overall Loan Results:
Event Grade Loan Count Original Principal Balance Percent of Sample
Event  Grade A 6 $2,152,115.00 100.00%
Event  Grade B 0 $0.00 0.00%
Event  Grade C 0 $0.00 0.00%
Event  Grade D 0 $0.00 0.00%
Total Sample 6 $2,152,115.00 100.00%
Credit Results:
Event Grade Loan Count Original Principal Balance Percent of Sample
Event  Grade A 6 $2,152,115.00 100.00%
Event  Grade B 0 $0.00 0.00%
Event  Grade C 0 $0.00 0.00%
Event  Grade D 0 $0.00 0.00%
Event Grade N/A 0 $0.00 0.00%
Total Sample 6 $2,152,115.00 100.00%
Compliance Results:
Event Grade Loan Count Original Principal Balance Percent of Sample
Event  Grade A 6 $2,152,115.00 100.00%
Event  Grade B 0 $0.00 0.00%
Event  Grade C 0 $0.00 0.00%
Event  Grade D 0 $0.00 0.00%
Total Sample 6 $2,152,115.00 100.00%
Valuation Results:
Event Grade Loan Count Original Principal Balance Percent of Sample
Event  Grade A 6 $2,152,115.00 100.00%
Event  Grade B 0 $0.00 0.00%
Event  Grade C 0 $0.00 0.00%
Event  Grade D 0 $0.00 0.00%
Event Grade N/A 0 $0.00 0.00%
Total Sample 6 $2,152,115.00 100.00%

 

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Previously Reviewed Due Diligence

 

7673764 7680120 7690352 7695091 7709784 7719917 7727051 7733191 7737654 7747917
7675998 7680118 7690354 7694074 7713577 7720238 7727052 7733192 7738501 7748374
7671386 7680123 7690356 7695924 7709785 7720239 7725760 7734159 7738500 7749760
7675615 7682947 7692077 7693533 7712383 7719432 7726204 7733193 7738124 7749190
7675607 7681556 7691267 7693538 7709787 7719435 7727575 7733194 7738502 7754901
7675610 7680775 7691268 7695491 7713578 7719436 7727053 7733195 7738503 7752518
7677063 7682948 7691269 7697728 7710749 7719438 7726207 7733196 7740990 7750488
7675611 7682955 7692078 7694077 7712390 7720996 7727055 7735158 7740540 7750490
7675612 7681557 7692080 7694079 7713576 7726200 7727056 7734161 7739835 7749762
7675618 7684933 7692082 7694080 7712391 7721752 7727057 7734164 7740541 7751868
7675999 7684343 7685992 7695092 7713575 7719439 7727058 7734165 7739834 7752523
7676000 7684934 7685419 7695093 7712396 7720997 7727059 7734166 7740544 7749761
7675614 7684938 7685993 7695094 7712394 7725173 7727060 7735160 7739837 7751873
7678221 7684939 7685420 7695928 7712395 7720999 7727907 7735943 7740543 7750489
7677064 7684940 7685994 7696291 7714582 7721000 7727910 7735164 7739838 7751872
7676003 7682959 7684937 7695929 7714583 7725755 7729884 7735649 7740545 7751869
7677066 7682961 7685995 7696295 7713579 7721753 7727913 7735650 7740546 7751871
7676006 7684930 7685996 7696297 7713580 7721001 7729261 7736980 7740549 7749194
7676007 7683910 7685997 7696298 7714585 7725756 7728564 7736652 7740994 7751373
7676008 7684334 7685423 7698742 7713952 7721754 7729695 7735651 7740550 7751371
7677074 7683911 7685998 7698747 7713582 7721755 7729264 7735652 7740551 7755690
7677075 7683912 7685425 7705030 7713953 7725757 7730595 7735945 7740552 7752519
7676009 7683444 7685427 7705031 7713959 7722349 7729699 7735946 7740554 7756131
7677077 7683914 7687412 7706750 7714590 7722351 7729700 7735947 7742082 7756126
7677079 7683913 7687410 7705034 7714990 7722855 7729882 7735950 7742558 7754900
7677080 7683446 7685999 7705035 7714593 7722355 7730596 7736654 7740995 7752252
7677081 7684336 7688673 7706126 7714991 7722356 7730597 7736982 7742559 7756125
7677084 7683915 7688674 7706751 7715634 7722357 7730598 7736656 7742560 7755687
7677082 7683916 7688298 7705524 7716724 7723943 7731729 7736983 7740996 7756124
7677083 7683917 7686001 7706128 7716721 7726203 7731242 7737648 7742083 7752524
7677085 7683918 7687414 7705525 7718778 7723944 7731730 7737649 7742561 7754902
7677086 7683920 7688299 7706130 7715637 7724516 7730599 7737650 7742562 7752251
7677916 7684337 7688675 7706759 7715639 7724517 7730601 7737651 7742564 7752253
7677920 7684932 7687417 7706752 7716723 7724518 7731732 7737652 7742565 7754899
7677921 7688303 7690346 7706753 7716725 7723945 7731733 7737653 7743945 7755689
7677922 7688304 7687416 7707501 7716064 7725170 7731734 7737655 7744898 7603685
7677924 7688305 7692989 7707502 7716065 7723947 7731243 7729885 7744899 7635220
7678222 7688306 7692993 7706756 7716067 7723949 7731244 7735157 7746268 7635222
7677925 7689328 7692522 7706132 7716727 7723950 7731735 7735159 7744900 7643263
7679260 7689329 7692990 7706757 7718094 7724519 7731737 7734163 7746269 7656616
7679261 7688679 7692524 7706758 7718095 7726201 7731738 7735648 7746270  
7679262 7688681 7692996 7706763 7718097 7726202 7731739 7736653 7750487  
7679677 7689330 7694068 7707506 7718777 7725171 7732344 7736981 7746883  
7679265 7690348 7694069 7707507 7717503 7725174 7732351 7738121 7746884  
7679266 7690793 7694070 7708465 7718101 7727046 7732345 7742557 7747914  
7679267 7689331 7694075 7708467 7718779 7727047 7732347 7738119 7746885  
7680116 7689332 7695090 7708468 7718102 7727048 7732348 7739825 7746886  
7680119 7690349 7694073 7709786 7718781 7727049 7732349 7738120 7747915  
7680117 7690351 7695098 7708470 7719915 7727050 7732352 7738499 7747916  

 

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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.

 

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