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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Introducing a New Interface to Navigate Our Website with EaseNews
We proudly launched our new website on November 13th. As you familiarize yourself with the new look of ad-co.com, you will come to know the many new offerings we provide. Along with the new website, we have organized our products as a menu of models and applications for a wide range of investor appetites. Let us review the menu of our product offerings.
Dynamic Models
LoanDynamics (LDM) is the credit modeling solution you need. Our behavioral model helps you manage interest rate and credit risks in single family, multifamily, and auto loans by forecasting prepayments, delinquencies, defaults, and loss probabilities.
RiskValDynamics (RVD) is our flexible valuation engine formerly known as OAS Subroutines. It combines LDM, our suite of MacroDynamics models, and our original, highly-efficient cash-flow engines.
MacroDynamics (MDM) is our suite of macroeconomic models including InterestRateDynamics, HomePriceDynamics, and UnemploymentDynamics.
Applications
Kinetics is our new modular platform, designed to deliver the full suite of our models and analytics with the option to license only the tools you need. LoanKinetics , our multi-functional whole loan application, joins the Kinetics platform, along with MSRKinetics (MSRK), our new web-based offering focused on assessing MSR risk, and PoolKinetics, a module for pay-up valuation of agency pools.
RiskProfiler (RP) is our complete valuation and risk assessment solution that covers all asset classes modeled by AD&Co: MBS and ARM pools, loans and their derivatives (IO, PO, MI, MSR), structured securities (CMOs), and hedge instruments. All inputs and outputs are stored in a SQL database.
We hope the new interface helps you learn more about all that Andrew Davidson & Co., Inc. can offer during these unprecedented times.
Happy Holidays and Stay Safe – Ashlea Bonds, Marketing
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Andrew Davidson & Co., Inc.’s LoanDynamics Models Empowers Fite Analytics’ MBS Analytics ServiceNews
Andrew Davidson & Co., Inc. (AD&Co), is proud to support Fite Analytics’ innovative cloud-native Mortgage-Backed Securities Analytics Service. The Fite Analytics solution incorporates AD&Co’s LoanDynamics models that provide forecasts of voluntary prepayments, defaults and losses that drive risk analytics across the mortgage-backed securities market with comprehensive coverage. To read the full press release click here.
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Introducing the New AD&Co WebsiteNews
We are thrilled to announce that Andrew Davidson & Co., Inc. has launched a new look for ad-co.com. Some of the exciting new features of this site include:
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A dynamic homepage highlighting the firm’s latest innovations, AD&Co client benefits, announcements, and Diversity, Equity and Inclusion efforts.
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Our new blog titled The S-Curve that offers our latest announcements, product updates, and insights on the mortgage market in real time.
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An enhanced solutions-focused structure organized by I Work In (includes industry and investment categories), Tools (product pages), Consulting, Insights (announcements and literature), and Client Portal (downloads portal and model resources).
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About AD&Co includes Our Company and Diversity, Equity, and Inclusion sections which offer a look into the firm’s foundation, culture, and practices.
Please take the time to:
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Register to access the new website. You will be prompted to set up a new password.
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Kindly verify your contact information on your User Dashboard. If you need to update your information, please contact us.
Finally, we’ve updated our Terms of Use and Privacy Statement. You will be asked to accept them when you log in for the first time.
Please let us know feedback or concerns to ensure we continue to serve you well. Thank you.
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The S-Curve Archives
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ProductsThe release of Andrew Davidson & Co., Inc.’s (AD&Co) new generation of financial engineering tools marks a shift to a new reality; when the traditional benchmark for MBS valuation, the LIBOR/ Swap yield curve, becomes unavailable. Our recent Product Release email informed our readers about the change. In short, our users can:
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ThoughtsFHFA held a listening session for interested parties on its proposed rule on the GSE process for credit scores. The objective is making mortgage underwriting and pricing more accurate and more fair while balancing practical implementation by firms in the mortgage ecosystem. Along with many others, I had the opportunity to provide insights on this proposed rulemaking.
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ThoughtsIn our January 19th blog entitled, A More Equitable Lending System Will Not Be Created by Accident, we described the efforts it will take to overcome not just bias in lending today, but the systemic factors that have limited access to credit in the past and have created an unjust system.
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ThoughtsIn this short blog post I discuss some developments taking place in the flood insurance landscape in the US and look ahead at a few potential directions things could go. I suggest that universal catastrophic flood insurance coverage with a continuation of the introduction of risk-based pricing would be a significant improvement.
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ThoughtsIntroduction
The Government-Sponsored Enterprises (GSEs) entered conservatorship in September 2008. One could view the succeeding thirteen years as a journey back to financial stability with a refined operating model that looks more like a financial utility than a hedge fund. This business model is more compatible with a fair lending mission for a standard-setter that maintains secondary markets under an effective regulator. The GSEs remain the largest part of the housing finance backbone and a resilient funding source during economic stress.
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Thoughts
Around 75% of white American families were homeowners in the first quarter of 2020, according to data from the United States Census Bureau. However, only 44% of Black American families owned their homes at the same time.
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Thoughts
According to a report by the Research Institute for Housing America, climate change risk is rapidly increasing in the housing industry and will continue to demand more attention and regulation in the near future.
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Thoughts
Mortgage market participants are keenly aware that the Federal Reserve has been scaling back its UST and MBS purchases and factoring the outcomes of its actions on stakeholders across markets.
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Thoughts
The growing prevalence of artificial intelligence in the mortgage industry is shining a new light on the human biases that have pervaded the industry since its inception. AI is meant to bring fairness and objectivity to mortgage decisions, but it can’t perform fairly if it was built on an unfair system.
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Products
The LDM v3.0.2 library adds AutoLDM to the v3.0.1 library.
Key benefits include: