Regulatory and Guaranty

Need to better evaluate risk?

Regulators and guarantors play a vital role in ensuring market liquidity to housing finance across the United States. As a result, you require products that can help determine risk-based capital and identify potential gaps in projected vs. actual performance of both secondary market loans and mortgage-backed securities to ensure capital compliance among market participants and manage systemic risk.

At AD&Co, we are a trusted source in providing independent prepayment, default, and loss projections on loans, pools, and structured securities. Using loan level borrower and property details, we combine models and proprietary analytics to provide risk intelligence on a wide range of mortgage assets including agency conforming loans (Fannie Mae, Freddie Mac and Ginnie Mae), non-agency loans, multi-family loans and structured products.

Supported by our experienced client service team that is available to address any concerns, our products help you:

  • Conduct surveillance of firms

  • Verify and benchmark models

  • Conduct stress tests

  • Ensure prudent origination and investment strategies

  • Ensure systemic risk management

Tools you can use

LoanDynamics logoLoanDynamics (LDM) is our flagship credit and prepayment model of mortgage loans to help you better understand prepayments, predict defaults and forecast credit losses that impact capital reserves. Trusted across the mortgage industry to forecast borrower behavior, it helps you manage asset-liability, forecast credit loss, determine MSR valuation, allow for pipeline hedging, and support both secondary marketing and portfolio management. LoanDynamics is offered in several mortgage versions based on asset class: Agency LDM and Agency LDM+, Non-Agency LDM, and Multifamily LDM and is made available through third-party vendors.

LoanKineticslogoLoanKinetics (LK) is our proprietary application that evaluates the inherent risk and performance of a loan, and value relative to other loans. You can perform this analysis using traditional stochastic analysis as well as our unique approach to identifying tail risk while capturing model risk. We provide updated CCAR scenarios or you can create your own user-defined scenarios. Built on a foundation that includes our LoanDynamics and MacroDynamics analytics, LoanKinetics seamlessly accesses these models to effectively use our unique and proprietary approaches in capturing risk. Product users also benefit from full documentation on our analytics and models, including regular assessments on model performance, as well as access to our Model Updates and Pipeline articles where we report on model adjustments. LoanKinetics is available directly from AD&Co.

MSRKinetics logo

MSRKinetics (MSRK) allows you to assess the value and risk inherent in a mortgage servicing rights (MSR) portfolio —including, but not limited to, interest rate risk. It allows you to project the effectiveness of hedging with TBAs. MSRK is powered by our LoanDynamics Model (LDM) and OAS Subroutine, and is integrated with our MSR-specific cash flow engine. It is available as a direct license from AD&Co.

Insights that can help you
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HPI Outlook

HPI Outlook is a quarterly report that explains our forecasts for the 25-MSA Composite Index and five geographical indices: US National Index, Los Angeles, Miami, New York and Phoenix Metropolitan Statistical Areas. These forecasts are generated by our third-generation HomePriceDynamics.