Latest Issue of LoanPerformance MarketPulse™ Features New Loss Severity Whitepaper From Countrywide Securities
Report Also Includes Mortgage Delinquency and Pre-Payment Trend Data
SAN FRANCISCO, June 14, 2006 – LoanPerformance, a subsidiary of First American Real Estate Solutions (RES®) and a leader in residential mortgage data and analytics for the mortgage industry and Wall Street, today announced that the latest issue of its MarketPulse report is available for download at www.loanperformance.com.
This latest report features a new whitepaper by Wei Wang, executive vice president, fixed income research, for Countrywide Securities Corp., entitled “Loss Severity: Measurement and Analysis.”
“As a result of the boom in non-agency mortgage products, the industry has experienced a significant level of loss,” said Wang. The study reveals that the unprecedented growth in alternative mortgage products since the late 1990s has compelled investors to better understand credit losses, including loss severity. Unfortunately, since no standard measurement of loss severity exists, confusion and misinterpretation occur when loss severity calculations are compared based on different definitions. The study proposes a standard definition for the measurement of loss severity. Based on this definition, the author presents important findings and discusses key issues in the analysis and modeling of loss severity.
The issue also summarizes a selection of key mortgage performance statistics through 2005, including geographic markets with the highest percentage of interest-only purchase loans and highest incidence of serious delinquency and prepayment rates for prime and subprime loans.
MarketPulse is a free quarterly report that presents analysis and insight into delinquency and prepayment trends for the prime, subprime, home equity and mortgage-backed and asset-backed securities markets. Each issue also contains a “RiskView” section with valuable insights from thought leaders on the prime, subprime and securities mortgage marketplace. The summary data in each issue of MarketPulse is extracted from LoanPerformance’s industry-leading mortgage servicing and securities databases. MarketPulse can be accessed by completing the electronic subscription form at www.loanperformance.com/marketpulse.
LoanPerformance is a subsidiary of First American Real Estate Solutions and a member of The First American Corporation (NYSE: FAF) family of companies. LoanPerformance’s databases track the delinquency and prepayment performance of 46 million active individual mortgage payments per month and provide loan-level information on more than $1 trillion in nonagency mortgage and asset-backed securities. The company’s data and suite of predictive prepayment and risk modeling solutions enable mortgage originators, servicers, securities issuers and investors to make informed business decisions about credit risk, loss mitigation, customer retention, securitization and investment. For additional information, visit www.loanperformance.com and www.firstamres.com.
The First American Corporation (NYSE: FAF), a FORTUNE 500® company that traces its history to 1889, is America’s largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people’s lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage Information, Property Information, and Risk Mitigation and Business Solutions—a new segment that the company formed in 2005 by combining its Credit Information and Screening Information segments. With revenues of $8.1 billion in 2005, First American has approximately 2,100 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com
Contact:
David Schulz
Corporate Communications
The First American Corporation
(714) 800-3298
dschulz@firstam.com
