RiskVal Financial Solutions has announced the launch of RVMortgage, a cloud-based risk management platform covering residential mortgages. RVMortgage simulates future home loan performance using econometric models. Users can run Monte Carlo simulation on numerous risk factors, including interest rates and housing price index (HPI) levels, to understand the impact of those stresses on the individual loan level. Results can be aggregated at varying degrees of detail and then output or graphed.
Loan-level data on forty-million individual U.S. mortgages powers these simulations. This data, including actual historical and spot paydown rates, outstanding principal, and other observable factors, makes the simulation of potential future events significantly more accurate.
The platform is hosted in a SAS70/SOC1-certified data center. Users access the platform via a web-based interface that is intuitive and that features numerous prepackaged features and criteria. For example, loans can be grouped and analyzed based on specific characteristics, including metropolitan statistical area (MSA), State and borrower credit score, all of which are available in the interface.
“We are pleased to release this innovative solution, which offers market participants a greater level of transparency into the risks associated with individual mortgages and the securitized products constructed using them," said Nigel Snowdon, vice president at RiskVal. "Our robust simulation models, available through a lightweight, hosted platform, will help investors to more effectively manage and report on risk.”