Agency LDM is designed to evaluate and quantify the credit risk in mortgage assets. It can be used for cash flow projections, bond pricing/valuation, and asset/liability management and hedging. Agency LDM is best for Agency pools, Credit-Transfer Rate (CTR) deals with formulaic severity, Collateralized Mortgage Obligations (CMOs) and TBAs.
Agency LDM+ is a model that evaluates agency collateral and whole loans. It considers the life of loans with foreclosure timelines and severity models. It is the best LDM option for CRT deals with actual severity and whole loans.