CoreLogic is now offering a new product called RiskModelDIRECT for large and smaller banks and investors to retrieve CoreLogic Risk Model projections for non-agency RMBS advanced prepayment, default, severity, and delinquency rate.

RiskModelDIRECT produces RMBS portfolio risk projections by using CoreLogic data that comprises over 97% of the non-agency RMBS market.

The model also integrates the CoreLogic HPI and HPI forecasts for over 200 Core Based Statistical Areas or CBSAs into its proprietary models. CBSAs are U.S. geographic areas defined by the Office of Management and Budget. The CoreLogic HPI data is used to isolate future default risk by calculating current zip-code or CBSA-level loan-to-value (LTV) estimates.

Because it is a subscription based analytics service, it removes the need and cost of licensing software, dedicated data storage hardware, facilities, secure backup systems, and support staff. RiskModelDIRECT can be a tool for banks who are trying to fulfill new regulations that require consistent monitoring of securities valuations.

The product is specifically designed for investors and managers who want access to the analytics without the overhead.

With RiskModelDIRECT, investors can specifically select a set of securities they are interested in on an a la carte basis or by subscribing to the entire MBS and ABS market of non-agency securities. It also provides collateral reports and scenario-based projections based on 20 macro-economic scenarios and offers the same data and statistical modeling techniques used by large investors.

“Many smaller and mid-sized fixed income investment managers can’t justify the investment in licensing and modeling staff,” said Ben Graboske, senior vice president, Real Estate and Financial Services, Data and Analytics Segment of CoreLogic. “RiskModelDIRECT allows them to evaluate existing non-agency holdings or price securities without purchasing and maintaining high-end analytical systems or developing internal proprietary models.”

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