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.
We hope you find the information useful and we look forward to your feedback.
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Day of Service 2025EventsThe Andrew Davidson & Co., Inc. (AD&Co) DEI Day of Service 2025 provided the opportunity to have fun and support the greater NYC community at the same time. Hosted by the AD&Co DEI Committee, we first gathered at the AD&Co office to prepare backpacks for unhoused students in support of Volunteers of America® Greater New York’s Operation Backpack®. Essential school supplies are being distributed to Elementary, Middle, and High School students. This volunteer activity aligns closely with the AD&Co values of continuous learning and education, and I feel confident that this donation of school supplies will be impactful to these young students.
On to lunch, Jing Fong “has been a New York institution since 1978, specializing in dim sum and Cantonese cuisine.” But what is Dim Sum? As advised by blogger Justine Pang, “Dim sum is a Chinese cuisine, taken from the teahouse culture in Hong Kong and Guangdong Province; in which consist of small plates of Chinese food paired with a hot cup of tea, and accompanied with family and friends.” At one time, Jing Fong occupied a space with 800 seat capacity. The center of the table was filled with fresh, delicious food, and it spins on a lazy susan to allow for easy sharing.
The last stop of the day was to the Museum of Chinese in America (MOCA). The museum specializes in collecting practical, everyday items that reflect ordinary life, and the magazine exhibit was especially interesting.
The Herbalist
“In the early days of Chinese medicine in America, Chinese treatment for certain ailments was more effective than Western treatments and didn’t have side effects” - MOCA The Laundry
Laundry businesses have historically provided a stable and reliable income for many Chinese immigrants who faced exclusion and racism from many other industries. The World of Magazines
“Through magazine publishing, a vital form of mass media in the 1990s, Asian Americans editorialized issues central to their lives and depicted themselves in ways that were unimaginable before. Magazine Fever presents stories of Generation X magazines–how they were founded and sustained; how they captured the essence of multiculturalism and Generation X paradigms, and how they impacted the ways Asian American identity is understood today.” - MOCA It was great to experience Chinatown in Manhattan via food, history, and culture. I had the opportunity to purchase two books at MOCA and will follow both MOCA and Jing Fong on social media to continue to support future events!
The S-Curve Archives
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EventsAndrew Davidson & Co. Inc. (AD&Co) proudly sponsored the Information Management Network (IMN)’s 10th Annual Mortgage Servicing Rights (MSR) Forum, held November 21 - 22, 2024 at the New York Marriott at Brooklyn Bridge.
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PodcastTune in to Michelle Stepien Breier's interview with Alex Levin & Matteo Caracciolo-King as they discuss their latest Pipeline article “AD&Co Updates its Home Price Index Model.” The interview highlights key points from the article as they share recent updates to the HPI3 model.
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ThoughtsWith the increasing volumes of Synthetic Risk Transfer (SRT) and Credit Risk Transfer (CRT) along with the discussion of BASEL III, we thought it would be useful to re-issue our comment letter to FHFA on the capital treatment of Credit Risk Transfer.
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PodcastRecently, senior credit modeler, Daniel Swanson had the pleasure of speaking with Rob Kessel from the Panoramic Capital Academy podcast titled, “Modeler’s Perspective on Prepayment Modeling.” This podcast is
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ThoughtsThe earliest paper we found examining the impact of climate risks on house prices was from 2017, which found a relationship between elevation/sea level rise and house price differences.[1]
We built our climate-conditioned HPA model in 2022 based on the idea that an increase in insurance costs would impact house prices (something we had not studied yet) in the same way that an increase of the same size in mortgage rates would impact house prices (something that we were quite familiar with).
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NewsAndrew Davidson & Co., Inc (AD&Co) is pleased to announce a new alliance with Mortgage Capital Trading, Inc. (MCT), a leading provider of mortgage capital market solutions.
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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.”
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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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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.