QUANTIFY PREPAYMENT AND CREDIT RISK TO BETTER UNDERSTAND AND VALUE YOUR PORTFOLIO
LoanDynamics (LDM) is AD&Co’s flagship prepayment and credit model that helps you manage interest rate and credit risks in mortgage loans by forecasting prepayment, delinquency, default and loss probabilities. Used across the financial industry, LoanDynamics provides an ability to measure risk and forecast portfolio values, based on a variety of changing economic and market conditions such as home prices, interest rates and unemployment.
LoanDynamics is flexible to use, allowing for cash flow projections, bond pricing/valuations, asset/liability management and hedging strategies. The model can be tuned to user-specific portfolios. Users are also given access to full documentation on how LoanDynamics is modeled, affording even greater understanding and total transparency into our approach. From the model’s construction to the outputs it generates, LoanDynamics can also effectively challenge a user’s own internal analytics.
LoanDynamics is available through a variety of third-party vendors. Product users are provided with user guides and a variety of publications that report on model updates, technology developments and related market issues.
Thanks to a cooperative effort with Equifax (EFX), Andrew Davidson & Co., Inc.’s (AD&Co) Impact Trended Credit for LDM now includes Equifax’s Revolver/Transactor metric that characterizes consumer behavior on their credit card tradelines over time. We can now quantify the impact of trended data on credit risk, prepayment rates, and the price of mortgage related assets such as loans, securities, mortgage insurance and servicing rights.
LoanDynamics (LDM) is available in various versions to satisfy client needs.
The LoanDynamics Model family includes
Features and Capabilities