Hosted Platforms Provide Nonagency RMBS Data, Analytics

New advances are providing technology to mortgage industry and secondary market participants that allows them to access detailed information about residential mortgage-backed securities.

A new cloud-based platform developed by CoreLogic provides prepayment, default, severity and delinquency risk projections on nonagency residential MBS.

The hosted service is offered on a subscription basis, which allows investors and servicers to have access to loan-level data and analytics without investing in the necessary infrastructure to develop a proprietary platform, which CoreLogic said can assist industry participants with meeting requirements to regularly monitor the valuation of investments.

“Many smaller and mid-sized fixed income investment managers can’t justify the investment in licensing and modeling staff,” said Ben Graboske, a senior vice president at CoreLogic’s Real Estate and Financial Services unit. “RiskModelDirect allows them to evaluate existing non-agency holdings or price securities without purchasing and maintaining high-end analytical systems or developing internal proprietary models.”

Investors can analyze a specific segment of securities or subscribe to access to CoreLogic’s entire MBS and asset-backed securities dataset, which the Santa Ana, Calif.-based company said covers more than 97% of the nonagency RMBS market. The projections are enhanced with CoreLogic’s home price index data and other analytical models.

Many large investment banks have their own proprietary analytics platforms that combine custom analytics modeling with internal and third-party data sources. But building the infrastructure in-house for such an in-depth look into the future is beyond of the resources of most small and midsize investors, like hedge funds and money managers. As a recent issue of Mortgage Technology explains, that dynamic is creating an opportunity for large financial services firms to fill that need by providing their clients with access to new and enhanced analytics platforms.

Other vendors are also answering the demand with products similar to CoreLogic’s new release. Denver-based Blackbox Logic developed a browser-based platform called Crystal Logic that launched last year. The platform comes preloaded with loan-level non-agency RMBS data and users can upload their own portfolios. From there, Crystal Logic users can slice and dice the loan data using various metrics that include location, origination data, performance, loan type and security, among others to create customized reports.

Blackbox Logic released Version 3.0 of Crystal Logic in May. The update included enhancements to the platform’s dashboard and reporting capabilities, as well as the addition of property valuations information and other external economic data.