Vendor Develops New Risk Analytics Tool

To improve visibility into the hidden risk of many of the mortgage assets currently plaguing the financial system and capital markets, TransUnion has developed a new solution called TransUnion Consumer Risk Indicators. This solution, developed in cooperation with First American CoreLogic, a member of The First American Corporation family of companies, makes available previously missing information for mortgage secondary market risk analysis and modeling. The TransUnion Consumer Risk Indicators for RMBS (residential mortgage-backed securities) and whole loans bring current and historical loan-level consumer credit information to the mortgage industry for risk analysis. This includes hard-to-find information such as complete adjustable-rate mortgage exposure (beyond the loan in question) and the consumer's capacity to pay. This data is already proven to predict risk and consumer behavior for numerous lending products such as mortgages, auto loans and credit cards, but has previously been unavailable for mortgage-backed securities. The TransUnion Consumer Risk Indicators for RMBS incorporate proprietary matching algorithms jointly developed between First American CoreLogic and TransUnion. These algorithms link individual loans within non-agency mortgage-backed securities to the consumer credit information of the specific borrowers of those loans.