Welcome to The Pipeline, Andrew Davidson & Co., Inc.‘s monthly newsletter — a “pipeline” of relevant and useful information, focused on recent trends, changes and advances in the mortgage investor’s market. We value your input and urge you to contact us with questions, comments or article suggestions. Enjoy!
AD&Co News
2010 Conference Recap; Video Tutorials Now Available for AD&Co’s LoanDynamics™ Model
by Rob Landauer
2010 Conference Recap
Thank you once again to all who joined us for AD&Co’s 18th Annual Conference, “A New Decade, A New Dawn” this year in New York City. While it is clear that there are still challenges to overcome and major decisions about regulations and industry infrastructure to be made, we were thrilled to gather with over 240 dedicated mortgage professionals to help explore opportunities that a revamped and revitalized industry present. (Continued)
Video Tutorials Now Available for AD&Co’s LoanDynamics™ Model
AD&Co has expanded its user support resources with the addition of on-line video tutorials for the LoanDynamics™ Model, its premier credit solution for your mortgage portfolio. The easy-to-follow videos help you get started more quickly and help you find the answers you need to operate the model correctly. Each tutorial focuses on a specific feature so you can master its operation. The video library includes the following tutorials and can be accessed from the Vectors™ Support drop-down menu (User Manuals) on our website.
When modeling the future behavior of borrowers, should one use MSA-level home price scenarios or will a single (“national”) home price index suffice? To localize or not to localize? Intuitively, most credit analysts will vote for full geographical model thinking: “The more – the better”. Whereas our research confirms that a single-index home price view is insufficient for accurate MBS credit analyses, not every form of geographical modeling yields reliable results.
Welcome to The Pipeline, Andrew Davidson & Co., Inc.‘s monthly newsletter — a “pipeline” of relevant and useful information, focused on recent trends, changes and advances in the mortgage investor’s market. We value your input and urge you to contact us with questions, comments or article suggestions. Enjoy!
AD&Co News
2010 Conference Recap; Video Tutorials Now Available for AD&Co’s LoanDynamics™ Model
by Rob Landauer
2010 Conference Recap
Thank you once again to all who joined us for AD&Co’s 18th Annual Conference, “A New Decade, A New Dawn” this year in New York City. While it is clear that there are still challenges to overcome and major decisions about regulations and industry infrastructure to be made, we were thrilled to gather with over 240 dedicated mortgage professionals to help explore opportunities that a revamped and revitalized industry present. (Continued)
Video Tutorials Now Available for AD&Co’s LoanDynamics™ Model
AD&Co has expanded its user support resources with the addition of on-line video tutorials for the LoanDynamics™ Model, its premier credit solution for your mortgage portfolio. The easy-to-follow videos help you get started more quickly and help you find the answers you need to operate the model correctly. Each tutorial focuses on a specific feature so you can master its operation. The video library includes the following tutorials and can be accessed from the Vectors™ Support drop-down menu (User Manuals) on our website.
Open this article...Home Price Modeling and Forecasting
New in AD&Co’s HPI2 Model: Geographical Localizer
by Alex Levin
When modeling the future behavior of borrowers, should one use MSA-level home price scenarios or will a single (“national”) home price index suffice? To localize or not to localize? Intuitively, most credit analysts will vote for full geographical model thinking: “The more – the better”. Whereas our research confirms that a single-index home price view is insufficient for accurate MBS credit analyses, not every form of geographical modeling yields reliable results.
Open this article...Prepayment Update
Current-to-Termination Model for the LoanDynamics™ Model
by Dan Szakallas
The upcoming beta release of AD&Co’s LoanDynamics™ Model includes a new methodology for estimating the current © to terminated (T) transition (CtoT), which represents the voluntary prepayment portion of the overall transition model. We have modified the way the model handles loan origination characteristics in determining not only the proper parameter set to be called, but also in the way that the forecasted prepayment response curve (S-curve) is built. We have also attempted to address the challenges of building a model that can perform well retrospectively before and during the crisis period, as well as produce reliable forecasts as we move forward into a new time of period or mortgage origination and securitization.
Open this article...