Whether it’s residential or commercial mortgages acquired on a whole-loan basis or through mortgage-backed securities — a wide range of services promise to predict performance, prevent defaults and identify other issues involved in secondary trades.
San Diego-based IRESE Inc. says that it provides an Internet-based, government-regulated exchange market where mortgage bankers can securitize their loans, property owners can insure against price declines and investors can benefit from real estate price movements and a fixed rate of return from diversified fixed-income investments.
The IRESE Exchange — by providing liquidity to residential and commercial mortgages, property-price-decline protection and debt-free cash to property owners — enables its members to trade small, inexpensive, easy-to-understand real estate notes and real estate options contracts in international real estate markets.
FinalCheck, from Santa Ana, Calif.-based CoreLogic, seeks to decrease rejections and buybacks by comparing borrower credit changes from pre-approval to pre-close and exposing any undisclosed loans, pending concurrent applications and fraud schemes through proprietary data and the MERS loan registry so that current, accurate loan information is submitted. The system is built on CoreLogic’s cross-referenced data and advanced analytics.
APF Advisory Services offers loss recovery and surveillance services for sellers and holders of MBS, collateralized-debt obligations and other mortgage-related securities. It can determine if false statements have been made in the securitization documents, including whether specific reps and warranties have been violated, according to Gary Shev, president of the Santa Monica, Cal.-based company. APF, he says, also provides services for recovering losses incurred by security holders.
Borrower behavior is analyzed to determine default risk under a new system developed by Atlanta-based Equifax Capital Markets. The analysis system also can predict the distance, in months, to default and whether a borrower will first default on a mortgage or on revolving debt, according to Equifax.
Equifax also is working with Denver-based BlackBox Logic LLC, leveraging its performance data for its own ABS Credit Risk Insight Direct to provide a more complete picture of the collateral health underlying non-agency mortgage-backed securities. The new combination, says Equifax, matches Equifax’s up-to-date borrower credit information to BlackBox Logic’s database of MBS performance data to help investors improve model accuracy, better predict loan default and prepayment and enhance deal surveillance.
Equifax’s ABS Credit Risk Insight Direct also now matches its indicators of loan performance, including credit scores and mortgage and home equity payments, to Lewtan’s ABSNet performance database, giving investors deeper insight to improve model accuracy, identify current healthy deals and strengthen deal surveillance.
The use of DebtX’s DXMarket Data to price performing and non-performing commercial real estate loans that collateralize commercial MBS continues to increase as delinquency rates remain high, according to Kingsley Greenland, CEO of the Boston-based firm. Other components of DXMarket Data include Secondary Loan Market Commentary, CMBS Loan Collateral Prices, Asset Valuation Spotlight, Secondary Loan Market Liquidity and CRE Capital Markets Observations.
Financial services companies interested in acquiring and managing residential whole loans can use Response Analytics Inc.’s Mortgage Asset Management solution to interface with numerous data sources, provide investor reporting capabilities and develop analytic insights from client data for use in proactively managing portfolios and improving asset performance. The system from the Scottsdale, Ariz.-based company is now being used by New York-based Vantium Management L.P. to support its workflow for acquiring and managing residential whole loans and securities from valuation to due diligence through disposition.
San Diego-based MCT Trading, a hedging and risk management firm, and Denver-based MountainView Capital Holdings, an advisor to participants in the mortgage and fixed income capital markets, have reached a strategic relationship in which MCT will introduce select clients to MountainView Servicing Group’s services in an effort to address more of its clients’ needs.
The new relationship will enable MCT to offer its clients additional services including mortgage servicing retained versus released execution analysis, mortgage servicing rights valuation and hedging and whole loan sales advice, said MCT President Curtis Richins. Also on the menu are potential whole-loan purchases by MountainView’s funds.
Fannie Mae’s EarlyCheck has been integrated with Mortgage Cadence, LLC’s Orchestrator, which includes its Loss Mitigation Technology and Document Services. Through this integration, lenders are able to submit a loan to EarlyCheck, retrieve the data file and analyze the results all without leaving Orchestrator, according to Chuck Kimball, executive vice president of product management for the Denver-based service provider.
Validating critical data prior to delivering a loan to Fannie, Kimball says, provides increased certainty for the lender and ultimately reduces funding and pooling delays after submission. Results from EarlyCheck, he explains, can also be used to drive workflow and initiate correspondence to assist lenders with error resolution.
To provide collateral reviews and ratings, Kondaur Capital Corp. has begun a new subsidiary DKR Collateral Dynamics provide full-range of collateral reviews to ensure “that the loan owner truly has the right to sell or foreclose on the loan,” Kondaur chairman Jon Daurio said, explaining that the new unit reviews every link in the chain of title, looking for the “missing link,” then providing services to supply it.
Ponte Vedra Beach, Fla.-based Capital Markets Cooperative, which provides services and expertise that reduce mortgage risk and maximize mortgage profits for lenders, has renewed its strategic alliance with Freddie Mac. The alliance gives CMC-partnered mortgage bankers preferred pricing on all executions at Freddie Mac’s cash window, free introductory use of Loan Prospector and discounts on training for large and small groups.
Similarly, the Independent Community Bankers of America and Freddie Mac have extended their eight-year alliance agreement that gives ICBA member banks superior access to the secondary mortgage market through Freddie Mac. Key features of the Freddie Mac-ICBA alliance include secondary market sale advantages, with cash executions customized to meet individual business needs; increased access to capital markets and portfolio management experts; and guaranteed rural housing loan products that help bankers reach more borrowers in rural communities.
And Business Solutions, a subsidiary of the American Bankers Association, has extended its alliance with Fannie Mae. The alliance, which dates back to 2001, provides advantaged terms to ABA member banks that opt into the program and sell loans to Fannie Mae by making them able to offer competitively priced mortgage products and services. The arrangement also assists banks by providing them with discounts on technology and training.
St. Louis-based Lenders One Mortgage Cooperative, a national alliance of community mortgage bankers, correspondent lenders and suppliers of mortgage products and services, has added San Diego-based Bank of Internet USA () as a preferred investor. Bank of Internet USA is a nationwide savings bank that primarily operates via the Internet and offers its customers consumer and wholesale banking services.
The new partnership, according to the company, will offer the cooperative’s members the additional financial tools to effectively serve their jumbo loan customers, including special pricing and access to customized portfolio jumbo and super jumbo loan products.
