Equifax will be linking its ABS Credit Risk Insight Direct to Lewtan's ABSNet Loan comprehensive database of residential deal and mortgage performance data.
The link will provide investors with an expanded dimension of transparency into MBS analysis, allowing them to better predict loan delinquencies, defaults and prepayments and make more informed trading decisions.
ABS Credit Risk Insight provides leading indicators of loan performance such as updated credit scores and detail on all mortgage and home equity payments, owner-occupancy and performance on past mortgages.
By statistically matching anonymous borrower credit information to Lewtan's ABSNet performance database, Equifax's solution offers investors more insight to improve model accuracy, identify current, healthy transactions as well as strengthen deal surveillance.
Lewtan's ABSNet database tracks more than 100 performance variables per offering. Its built-in surveillance tools allow investors to quickly make comparisons between deals and monitor multiple securities without having to manipulate remittance reports. To improve model and valuation accuracy, investors now have the option of appending Equifax data solutions to Lewtan securities data.
Yesterday Structured Finance News reported that Equifax and BlackBox Logic are working together to give investors greater transparency into borrower credit health.
Equifax's ABS Credit Risk Insight Direct will now leverage BlackBox Logic's performance data on more than 21 million loans across close to 7,600 transactions. This provides a more complete picture of the collateral health underlying non-agency MBS.
ABS Credit Risk Insight offers lenders and investors with up-to-date borrower and property value information available. Equifax's solution statistically matches up-to-date borrower credit information to BlackBox Logic's database of MBS performance data. This can help investors improve model accuracy, better predict loan default and prepayment and enhance deal surveillance.
"More than ever before, investors are focused on addressing industry and policy requirements while looking for ways to increase their confidence in the collateral behind securities. This is where solutions that provide transparency into collateral risk play a critical role," said Steve Albert, vice president of Equifax Capital Markets. "The combined strength of Equifax's industry-leading solution and BlackBox Logic's extensive loan-level MBS data gives investors the insight they need to better predict securitized loan performance and make more confident trading decisions."