Verisk Analytics Inc. has announced the acquisition of Strategic Analytics, a provider of credit risk and capital management solutions to consumer and mortgage lenders. As part of the Interthinx business unit of Verisk Analytics, Strategic Analytics will provide customers advanced solutions and professional services critical to loss forecasting and the stability of the U.S. residential mortgage market.
“The Strategic Analytics solution and application set will allow our customers to take advantage of state-of-the-art loss forecasting, stress testing, and economic capital requirement tools to better understand and forecast the risk in their credit portfolios,” said Kevin Coop, president of Interthinx. “These tools are applicable and are currently deployed in all verticals of consumer lending, including automotive, credit card, and student loans, and mortgages."
Through Strategic Analytics, Interthinx will offer various mortgage risk analytics products. The Mortgage Risk Model (MRM) gives retail lenders access to a comprehensive mortgage loan-level database—incorporating the vast majority of non-agency loans for the residential mortgage-backed securities (MBS) market. Forecasting technology is available to incorporate significant measures of origination quality, maturation effects, and environmental factors into analytics tests that traditional roll-rate modeling methodologies cannot effectively capture.
The acquisition will also provide Interthinx customers access to the mortgage-backed securities/asset-backed securities (MBS/ABS) Securities Forecasting Service (SFS), as well as accurate cash flow, conditional payment rate, conditional default rate, and loss severity projections for lenders and investors to price and trade mortgage assets with high efficiency
“Strategic Analytics advanced modeling software uniquely transforms data from one of the largest repositories of loan-level mortgage data into usable business intelligence,” said Joe Breeden, president of Strategic Analytics. “We are excited to become part of the Verisk Analytics and Interthinx team. This affiliation will significantly boost our objective of providing mission-critical credit risk management solutions to our customers worldwide.”
For more information, visit www.strategicanalytics.com, www.interthinx.com or www.verisk.com.