First American CoreLogic Announces Availability of LoanPerformance RiskModel 4.2 Analytics Solution
—Latest Release Features New Prime Transition Model, Data Import Service and Expanded Functionality—
September 17, 2009, SANTA ANA, Calif.
First American CoreLogic, a member of The First American Corporation (NYSE: FAF) family of companies and America’s largest provider of advanced property and ownership information, analytics and services, today announced the availability of the LoanPerformance RiskModel 4.2, its industry-leading analytics solution, which forecasts future mortgage prepayments, defaults, losses and projected cash flows at the loan and portfolio level.
Highlights of the new 4.2 release include:
- Prime Transition Model: The new prime transition model is based on a larger dataset incorporating recent market experience with enhanced equations that better capture the effect of home price volatility, the corresponding impact on the loan-to-value of a mortgage and the correlating relationships between loan origination characteristics. Additionally, several software enhancements have been implemented in order to support the new jumbo prime conforming loan limits established by Fannie Mae and Freddie Mac. These changes result in the designation of prime loans being classified into one of three categories: conforming, jumbo conforming and jumbo non-conforming. Each of these is tied to a specific rate index used to determine a loan’s refinance incentive.
- Data Import Service (DIS): The DIS now continually monitors TrueStandings® Securities, which accesses the LoanPerformance loan-level non-agency securities database and checks for available downloads. When a file is successfully downloaded, the DIS will split the file by deal then loan group and automatically run a simulation based on a predefined RiskModel project file. At the conclusion of the simulation, the service will notify the user via e-mail and provide a link to the resulting reports.
- Surveillance Dial Recommendations: Version 4.2 provides updated prepayment, default and severity dial recommendations intended to calibrate RiskModel to current market volatility.
- Batch Simulation Processing: Batch simulation processing is a new feature that allows a user to assign multiple simulation jobs to a single batch job. When running a batch job, each associated simulation job is queued up and processed sequentially through RiskModel. When the batch job completes, a detailed log is provided indicating the status of each individual simulation job.
- Expanded Reporting: Version 4.2 features expanded loan-level reporting for prime, alt-A, and non-prime collateral. Additionally, loan-level loss calculations have been added for home equity line of credit (HELOC) collateral.
“The release of RiskModel 4.2 represents both significant enhancements and improved performance for our clients at a most critical time for our industry,” said George Livermore, chief executive officer for First American CoreLogic. “The updated prime model will more accurately forecast performance given the expanded dataset used to build the model and better capture both the recent volatility of, and the structural changes in, the market,” added Livermore.
LoanPerformance RiskModel can enhance portfolio management to project the performance and volatility of a portfolio as well as individual loans. Drawing on the mortgage industry’s most comprehensive database of more than 70 million prime and subprime loans and employing sophisticated predictive modeling, RiskModel provides the only commercially available model that simultaneously considers credit and prepayment risk. Key analytical capabilities include built-in Monte Carlo simulators of interest rates and home prices that are user modifiable, “dials” to calibrate the model to unique aspects of a client’s portfolio, the ability to track loan transitions through eight payment statuses of delinquency and default, and an application programming interface (API) that can be embedded in mortgage pricing and trading systems to analyze huge volumes of bonds and other securities. More information about LoanPerformance RiskModel can be found at www.loanperformance.com.
About First American CoreLogic
First American CoreLogic, a member of The First American Corporation (NYSE:FAF) family of companies, is the largest provider in the U.S. of real estate, property, ownership, fraud, mortgage and mortgage securities data—and the advanced analytics that use them—for the assessment of real estate sales, collateral valuation, home price trends, mortgage originations, mortgage- and asset-based securities pricing, foreclosures, delinquencies and asset dispositions. Its market-specific data covers 98 percent of all U.S. ZIP codes and 3,059 counties in all 50 states and the District of Columbia, representing 99 percent of the U.S. population, 97 percent of all properties (140 million), more than 50 million active mortgages and 96 percent of loan-level, non-agency mortgage securities. First American CoreLogic’s products and services enable customers to manage credit and mortgage risk, protect against fraud, acquire and retain customers, mitigate loss, decrease mortgage-transaction cycle times, value properties accurately, determine real estate trends and project future market performance. For more information about First American CoreLogic, please visit www.facorelogic.com.
About First American
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $6.2 billion in 2008, it 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, Information and Outsourcing Solutions, Data and Analytic Solutions, and Risk Mitigation and Business Solutions. More information about the company and an archive of its press releases can be found at www.firstam.com.