New Product Helps Mortgage Investors Manage Risk
Offering a real-time tool to deal with a volatile market, analytics software vendor Quantrix here will provide a modeling interface for risk-analytics firm Andrew Davidson and Co. The partnership between Quantrix and ADCo will deploy the Quantrix Modeler as the interface for ADCo's new LoanDynamics Mortgage Credit Model to serve fixed-income investors in the mortgage-based securities industry.
The model incorporates historical data from approximately eight million loans from 144 issuers across 15 years to analyze borrower behavior and predict mortgage loan dynamics. The Quantrix LoanDynamics Interface enables mortgage credit analysts to analyze loan data, define interest-rate and housing-price scenarios, and model any combination of loans and scenarios with Quantrix Modeler. Customers receive a turnkey solution that includes ADCo's LoanDynamics Model, Quantrix Modeler licenses and the Quantrix LoanDynamics Interface.
"We selected Quantrix based on the facility it provides to quickly and easily populate the model with the large volume of loan level data required and to display the rich set of analytical outputs in an easy-to-digest, multidimensional format," said ADCo president Andrew Davidson.
"For anyone concerned with credit risk and the risk of default concerned with mortgage loans," said Chris Houle, CEO of Quantrix, "what this provides is the ability to open the hood to see how things work against various scenarios, even at the loan level, if interest rates or prices move in a certain direction. Traditionally the tools people would be using are applications that don't give you a lot of flexibility," he told NMN.
"With this tool you can model the results, then change at a detailed level. You can make decisions in minutes. It's a business tool rather than a mere technology application."
Quantrix Modeler lets users create formulas in normal language to reduce the number of required formulas and makes models easy to understand and audit. Quantrix also offers interface tools and an API to integrate with external systems. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com