Credit Risk Manager
Credit risk managers play a number of key roles in the mortgage-finance industry—as originators, secondary marketers, rating-agency professionals—benchmarking loan portfolios, creating credit policies, determining loss and capital reserves, and projecting portfolio performance scenarios. LoanPerformance products that are especially valuable for risk managers include:
For more information about individual LoanPerformance products, please visit Our Products and Business Value.
TrueStandings Securities
TrueStandings Securities provides credit risk managers access to the most comprehensive source of credit risk and prepayment information available anywhere—loan-level data detailing the collateral underlying over 4,400 active private-issue mortgage-backed securities (over 80% of the outstanding pool balances since 1992). Using this data, credit risk managers:
- Identify risks based on undesirable underlying collateral
- Isolate combined LTV, credit score, other risk characteristics
- Determine the relative importance of all key performance drivers
- Support trading desks with deal, issuer, market performance analysis
- Generate complex, automatically-updated analyses and reports
- Work anytime, anywhere using pure web-based technology
- Mine, analyze data visually with pivot-tables and graphs
Identify yourself (name, company, email only) on the accompanying form and download a PDF of the TrueStandings Securities product brochure (3.4MB).
TrueStandings Servicing
Web-native TrueStandings Servicing, due to replace LPS Prime and Subprime in Q1 2006, gives credit risk managers the power to evaluate portfolios online, benchmark them against the market, and analyze risk, all in much less time—and with far greater accuracy—than ever before, even with locally-installed software. Built from the ground up to be the industry’s best-of-breed, TrueStandings Servicing includes a number of new capabilities:
- Expanded report filters
- Extended performance-measure parameters
- Additional product types to cover ARM variations
- Zip code-level access for more granular, localized analysis
- Interactive mapping feature that enables users to plot metrics geographically
- Query-response times that are 10 to 50 times faster than conventional systems
TrueStandings Servicing—now in beta—is scheduled for general release early in the first quarter of 2006. For more information, see TrueStandings Servicing in “Our Products.”
TrueLTV
TrueLTV enables credit risk managers to identify, evaluate, and monitor the impact of HELOCs and other second-mortgage liens on active first-mortgage pools and portfolios. Starting with user-supplied first mortgage files, TrueLTV searches LoanPerformance and First American databases and appends any additional liens, including dates and amounts. Graham-Leach-Bliley-compliant, TrueLTV identifies all types of second liens:
- Silent seconds (seller-financed seconds)
- Piggyback seconds (simultaneous originator-provided seconds)
- Up-sell or cross-sell seconds (subsequent originator-provided seconds)
- Borrower-initiated seconds
Identify yourself (name, company, email only) on the accompanying form and download PDFs of the TrueLTV product brochure (139KB).
RiskModel
The LoanPerformance RiskModel gives credit risk managers an unparalleled ability to predict future mortgage credit and prepayment risk accurately. Drawing on the industry’s most comprehensive mortgage database—over 70 million loans—and utilizing advanced predictive analytics, the RiskModel allows managers to:
- Forecast prepayments, delinquencies, defaults
- Calculate expected losses for setting loss reserves
- Project unexpected losses for setting economic capital
- Create stress scenarios to test loan performance under duress
- Project the impact of interest rate volatility, housing market declines
- Evaluate risk/return trade-offs, project status changes (including LDG)
- Provide future-outcome probability distributions for regulatory compliance
Identify yourself (name, company, email only) on the accompanying form and download PDFs of the RiskModel product brochure (172KB).
PreTell
The first loan-level prepayment scoring tool, PreTell predicts the probability of a loan prepaying compared to another loan of the same type (Alt-A, subprime, etc.). Built with industry support and validation from leading originators, servicers, traders, investors, and guarantors, PreTell gives risk managers unprecedented power to:
- Leverage robust traditional, demographic, performance data
- Quantify near-term prepayment risk embedded in portfolios
- Identify overall likelihood of a loan to pay off
- Predict whether prepayment will be refi or move
- Evaluate portfolio servicing and retention strategies
- Evaluate pricing for production, secondary marketing
- Automate real-time scoring of portfolio risk, retention, valuation
For More Information
To learn more about LoanPerformance products for credit risk managers, please send us an email or give us a call at the appropriate number for your geographic area.
