First Multifamily Model from Analytics Provider AD&Co Now Available through PolyPaths
New York, NY, July 20, 2017 — PolyPaths is pleased to announce that Andrew Davidson & Co., Inc.‘s (AD&Co) newest addition to the LoanDynamics (LDM) family of products—Multifamily LDM—is now integrated and available for use in PolyPaths. LDM has been extended to include GNMA and FNMA multifamily collateral. This represents AD&Co’s first general release for mortgage loans secured by residential properties of five or more units.
Over the last few years, the decline in homeownership has been accompanied by an increase in both the number of renters and the construction of new apartment buildings. In 2015, the mortgage debt outstanding for multifamily residences topped the one trillion dollar mark. In response to this growth and market interest, AD&Co developed the Multifamily LoanDynamics Model.
Multifamily LDM is designed to help investors, servicers, insurers, GSEs, and lenders evaluate and quantify the prepayment and credit risk of their multifamily mortgage assets. The model forecasts a monthly vector of total prepayment speeds that can be used for cash flow projections, bond pricing/valuation, and asset/liability management and hedging. These monthly vectors of total prepayment speeds can be broken into voluntary and involuntary components.
The prepayment and default forecasts produced by Multifamily LDM are built upon historic multifamily MBS data and borrow from the modeling innovations and expertise that have made AD&Co a leader in single-family mortgage prepayment and default models. This model is a culmination of a yearlong, companywide development effort that has resulted in an economically grounded model to explain the motivation for multifamily borrowers to prepay and default on their loans.
Multifamily LDM is a loan-level model designed for the various terms of GNMA project and construction loans, as well as FNMA DUS (Delegated Underwriting and Servicing) loans. Notably, our forecasts organically handle the prepayment penalty structures of lockout, penalty points, and yield maintenance that make agency multifamily loans substantially different from their single-family counterparts.
Free trials are available. For more detailed information about Multifamily LDM, currently in Beta form and expected to be officially released later this year, please contact Andrew Wilcox at 212-274-9075 or firstname.lastname@example.org. For questions about the PolyPaths system, please contact Kelli Sayres, email@example.com.
PolyPaths was founded in 1996 to create a versatile, easy-to-use, fixed income analytics solution with uncompromising analytical rigor. Today, the company is the market leader in advanced solutions for fixed income analytics. Its platform leverages its founders’ vast experience in high volume, sell-side systems and combines the modeling rigor and user control of a single sector trader with the universality of a general portfolio manager. The resulting system meets the diverse needs of multiple users in the front and mid-office of financial organizations including traders, hedge fund managers, portfolio managers, risk managers, research analysts and asset liability managers. For more information, please visit www.polypaths.com.
Andrew Davidson & Co., Inc., founded in 1992, is a leading provider of risk analytics for fixed income investors with an emphasis on mortgage and asset-backed securities and mortgage whole loans. The unique blend of investment expertise and cutting-edge quantitative methods combines decades of Wall Street experience with the most advanced modeling techniques. For more information about Andrew Davidson & Co., Inc., please visit www.ad-co.com.