Welcome to The S-Curve
Now you will be able to receive the latest announcements, product updates, and our insights on the mortgage market in real time.
The name of the blog, the S-Curve, is a reflection of our logo and the central feature of our prepayment model. S-curves are seen in nature in many phenomenon, from population growth to prepayment and default models. Our first S-curve, in the early 1990s, used the arctangent function, then piece-wise linear functions, and evolved over time to be more complex and vary by FICO, loan size and LTV. This evolution encapsulates both the timeless nature of fundamental relationships and constant innovation to describe them better over time.
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The Power of MentoringThoughtsJanuary is National Mentoring Month which is very appropriate since it coincides with the time when we typically set out our goals and intentions for the New Year. Organizations are embracing mentoring programs and these programs have indeed become a strategic imperative for many. There are many benefits to mentorship and it's easy enough to comprehend. The individuals involved in a mentoring relationship and the organizations that choose to sponsor a mentoring program all are likely to benefit.
For the organization, mentoring can build and strengthen the talent pipeline; help build loyalty among emerging talent; set up or help identify the next generation of talent; and build strategic alignment across silos of an organization by informally encouraging knowledge sharing across different areas. Mentoring programs have proven to be an effective tool to retain and effectively onboard talent, decrease the learning curve for critical roles, build a leadership pipeline, increase employee engagement and build networking and sponsorship. Additionally, mentorship is more frequently being used as a thoughtful tool to promote diversity, equity and inclusion by ensuring that all talent within an organization is provided with opportunities to learn from what the organization may consider to be the 'best and brightest' or simply by those who 'have been there and done that' before. Mentorship promotes diversity of thought and experience to be shared, which we are universally understanding, and recognizing is a benefit to any organization.
For the individuals in a mentorship relationship whether or not they are a part of a formal program, there is unlimited opportunity for learning, growth and development. A mentee has the benefit of getting perspective from someone who can be encouraging but also provide critical and frank feedback when needed and be instrumental in helping a mentee to increase their resiliency in the face of challenges. Mentors can help a mentee to navigate specific situations or people as well as provide sage advice on navigating a career. Solid mentorships can flourish and last for months or years.
Mentorship programs help to connect or match individuals and provide a framework that encourages confidential dialogue on a regular and consistent basis. For organizations -launching, executing and coordinating a mentorship program may seem like a daunting task but it does not need to be. Mentorship comes in all shapes and sizes - the key is to get started. Any company or association should consider providing tools and encouragement for mentorship opportunities both inside and outside of its organization as a simple way to demonstrate that they wish to invest and focus on talent. Talented employees are often looking for opportunities for personal and professional growth just as much as they are seeking promotions and compensation increases. It is important that team members believe they have access to impactful development opportunities to hone their skills and grow into their full potential. Mentorship programs demonstrate a commitment to the employee to develop in the manner they want with goals they establish.
If there is an existing program at your organization, see how you can get involved. If there is no formal mentoring program at your organization then consider helping to build one. In any case, no matter where you are in your personal or professional journey, look for a mentor. And for those of us who are senior leaders look for one or more mentees. I took much pride and enjoyment in starting up a mentorship program at my former company which had hundreds of employees from around the world participate through several "waves" of the program. In addition to opportunities within your company - there are many organizations that seek mentees to volunteer their time. American Corporate Partners (ACP) is a great one that I have had the pleasure of being a part of which helps our veterans, and their spouses prepare for professional opportunities outside of the military. GROW MENTORING is another that I have been a part of which began during COVID-19 by a young lawyer in the UK who simply wished to encourage junior lawyers and law students to connect with more experienced professionals during an otherwise isolated time. University alumni associations, professional organizations such as TechGC and many other groups have mentorship opportunities to get involved in and are always looking for volunteers.
And keep in mind that in a mentoring relationship it's not only the mentee that benefits! Mentorship builds a two-way, mutually beneficial relationship. What mentors learn and take away from mentoring their junior mentees is often priceless and may be the biggest surprise in any mentorship relationship. A good mentor should be an active and open listener. As an active listener a mentor can learn new insights, new values, and tools from their mentee including strengthening their coaching and feedback skills and make important often long-lasting relationships.
Ask most leaders if they have had one or more mentors during their career journey and the answer will undoubtedly be a resounding 'yes'. At a low cost with opportunity for high impact, it is no surprise that mentorship programs are becoming more and more popular, and more and more employees are getting involved. As you set your goals for 2023, I encourage you to seek out opportunities to be a mentor or mentee for yourself and for others.
Happy National Mentoring Month!
The S-Curve Archives
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EventsAt Andrew Davidson & Co., Inc. (AD&Co), our dedication to Diversity, Equity, and Inclusion (DEI) has been a cornerstone of our values. We established our DEI Committee in 2020, following the tragic murder of George Floyd. Despite the evolving landscape, including the recent U.S. Supreme Court decision impacting affirmative action in higher education, we remain steadfast in our commitment to fostering an inclusive environment that strengthens both our employees and the company.
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PodcastTune in to Eknath Belbase's interview with Michelle Stepien Breier & Richard Cooperstein as they discuss their latest Pipeline article “Improving Mortgage Data: A Data Exchange for the Mortgage Ecosystem.” -
EventsAt the recent AmeriCatalyst ‘Going to Extremes’ Climate, Housing and Finance Leadership Summit, I presented a session on how risks related to weather-related losses impact the housing finance system.
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EventsAndy and I recently attended AmeriCatalyst ‘Going to Extremes’ Climate, Housing and Finance Leadership Summit in Washington, D.C., a fantastic conference on all things related to climate risk and the housing ecosystem. While going over all the great speakers and broad expertise represented there would take a novella, I want to connect a few key ideas discussed there to our ongoing efforts in this area.
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ProductsAndrew Davidson & Co., Inc (AD&Co) is thrilled to announce an expanding relationship with a Third-Party Vendor! AD&Co enjoys working with countless analytical providers to offer our clients seamless solutions and we would like to welcome Milliman M-PIRe™ to the team!
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EventsThe Federal Home Loan Bank of San Francisco directed the Urban Institute to develop innovative and actionable ideas to close the gap between white and black homeownership rates, which is as wide today as before the Fair Housing Act, enacted 60 years ago. Homeownership is crucial to a fairer society because working and middle-class families most commonly create inter-generational wealth by owning homes with amortizing mortgages.
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EventsThe Data Foundation of Mortgage Finance
Homeownership is the largest source of wealth accumulation and inter-generational wealth transfer for the working and middle class. However, the non-interest cost of financing is always an obstacle for first-time and low-wealth buyers, and underserved populations.
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ThoughtsIn this blog post, we used the recently updated Mortgage Market Statistical Annual to examine the dynamics of residential loan origination by state and by market segments and highlight important trends.
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ProductsAndrew Davidson & Co., Inc. (AD&Co) is pleased to announce the official release of Kinetics v1.10, the latest update to AD&Co’s modular platform for running the AD&Co suite of analytics. This update introduces the Multifamily LoanDynamics Module, the newest way to run Multifamily LoanDynamics Model (LDM). Investors, servicers, insurers and lenders can leverage this new module to better understand the prepayment and credit risk of their multifamily mortgage portfolio.
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EventsAndrew Davidson & Co., Inc. (AD&Co) held a webinar on June 8th entitled “Lessons Learned: Insights for Managing the Interest Rate Risk of Banks.” Mickey Storms from our Alliances and Policies team, Alex Levin from our Financial Engineering team and Andrew Davidson were featured speakers.