|
San Francisco, CA - July 27, 2004 - LoanPerformance, a leading research and
analytics company serving the mortgage industry and Wall Street, today announced
the availability of version 3.0 of its RiskModel analytical tool at its 2004 Risk Summit
in Carlsbad, CA.
LoanPerformance RiskModel 3.0 is the most advanced tool available for projecting
future prepayments, defaults, losses and cash flows for residential mortgage
portfolios or individual loans. In addition, it is the only commercially-available model
that simultaneously considers both prepayment and default risk while integrating the
effects of borrower behavior, interest rate fluctuations, and housing price
movements on residential mortgages.
“This release represents a major forecasting advancement that benefits our clients
by increasing the precision of their pricing and reserve setting,” said Ralph DeFranco,
Ph. D., director of product management at LoanPerformance. “We are very excited
about extending our contribution to improving the safety, soundness, and
profitability of our clients.”
The comprehensive release provides new, advanced scenario modeling of the impact
of “payment shock” and teaser rates on adjustable rate mortgages (ARMs), and the
effect of housing price appreciation on prepayment behavior. In addition, RiskModel
3.0 now utilizes an unparalleled 23 modeling factors, including the refinance
incentive, seasonality, and loan size. All factors were re-estimated using the most
recent data from LoanPerformance’s loan level mortgage databank of over 46 million
active loans - the industry’s largest such data source.
This Windows-based software program enables institutions to more accurately set
loan loss reserves and to perform a full spectrum of risk management processes
including: portfolio grooming, risk-adjusted pricing, cash flow projections, valuation
of securities or insurance, loss mitigation, asset and liability management and
hedging, and the negotiation of appropriate coverage on securitization and guaranty
fees.
The model's ability to perform multiple scenarios using thousands of possible futures
for interest rates and housing prices is just one of the reasons that the RiskModel is
the predictive technology of choice for the nation's largest banks, thrifts, and
ABS/MBS issuers.
For more information about RiskModel, please call the LoanPerformance
representative in your area: West – Jim Kinnebrew (415-536-3523) Midwest –
Charles DiMascio (909-593-0141) NY to DC Corridor – Connie Keim (973-226-0084)
New England, PA, OH – Brian Gunn (415-536-3537) Southeast – Debra Donan (908-
304-0263).
About LoanPerformance
San Francisco, CA-based LoanPerformance (formerly MIC) is a leading data research
and analytics company serving the mortgage industry and Wall Street.
LoanPerformance tracks the payment performance of 90% of the outstanding prime
mortgages in the U.S, 65% of the outstanding subprime market and 80% of the
private (non-agency) mortgage securities market. LoanPerformance aggregated
databases and analytical tools enable financial service institutions, Wall Street
analysts, and mortgage investors to make more informed decisions by integrating
robust data and analytics into their credit risk and securitization processes.
For more information, visit www.loanperformance.com, or call 415-536-3500.
©2004, LoanPerformance. All Rights Reserved. LoanPerformance and Risk Model
are trademarks of LoanPerformance, Inc.
Media contacts:
Bob Visini
LoanPerformance
415.806.8140 (mobile)
415.536.3526 (office)
bob.visini@loanperformance.com
John Lewis
Campbell Lewis Communications
202.285.5726 (mobile)
202.261.6548 (office)
john@campbelllewis.com
|
