BRES Advisors, Inc. on Monday launched a new analytical application, REOlyticsT, which models future behavior of residential assets by taking into account local market models, future absorption rates, and other factors.
The company said the product enables lenders, portfolio managers, investors, and servicers to project the dynamics of the home value and market behavior, resulting in better buy/sell/hold decisions.
Users can model pricing, and offer strategies based on market dynamics and local knowledge with "What If" tools, it said. According to the company, the new dimension of today's asset centric market involves "local data, local analysis, local trends, and local market behavior forecasting."
With 1 in 4 properties owing more than the property is worth, the concept of strategic default has now become a viable option for financially capable consumers in markets that have lost significant value, have long absorption times, and continued falling values. These troubled properties represent an extreme risk segment of the market resulting in REO or short sales even though the borrower's ability to pay remains intact.
The product was unveiled at the MBA convention in Atlanta.
