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Collateral Analytics Launches Credit Risk Model

NationalMortgageProfessional.com
May 02, 2014

Collateral Analytics has launched the CA Credit Risk Model. This new patent pending product is designed to offer quantitative measures of the risk and cost of potential borrower default embedded in a residential mortgage. The CA Credit Risk Model combines CA’s industry leading AVM with its proprietary home price forecast and mortgage performance models to predict the expected profitability of a mortgage. Some recent articles about this new product are available here. “Our new Credit Risk Model can be used to help lenders set the interest rate that should be charged for a particular loan based on its loan-to-value ratio, borrower’s credit score, and specific loan and property traits”, says Michael Sklarz, president and CEO of Collateral Analytics. “As such, it can be viewed as a pricing tool for an individual mortgage, mortgage portfolio, or an indicator of the credit risk among different real estate markets.”
Published
May 02, 2014