FirstAm Unit Unveils TRU Scoring Model

First American Subordinate Lien Outsourcing, Dallas, has announced the debut of its Tool for Reserve Underwriting Scoring Model, which defines the potential loss, predicted recovery, and velocity of recovery on a monthly timeline for a subordinate loan pool. Created to address the risk management needs of Wall Street and hedge fund clients, the TRU Scoring Model delivers gross recovery cash-flow projections on a 24- to 36-month basis for a pool of performing or nonperforming subordinate lien assets, the company said. It projects recovery based on internal collection experience with similar types of collateral derived from delinquency and collateral characteristics. "It has been an invaluable solution in managing performance expectations in relation to market servicing benchmarks for the 100,000 distressed junior lien assets that we monitor in our operation," said Brett Benson, director of analytics at First American Subordinate Lien Outsourcing. "In addition, the use of our data products and analytic scores provide a powerful complementary set of metrics for assessing potential losses related to subordinate liens and home equity lines of credit." The company can be found online at http://www.firstam.com.