Financial institutions rely on models for a wide range of purposes, including valuation, forecasting, risk management, capital planning, accounting, trading, and reporting. The same model may be used differently by different organizations, and sometimes differently within the same organization. For that reason, model validation should not begin with the question, “Is the model correct?” Instead, the more useful question is: “Is the model appropriate for the purpose for which it is being used?”

Over the past summer, Andrew Davidson & Co., Inc. (AD&Co) was pleased to have Stephanie Duenas and Anika Chatterjee interning with us at our office in New York City. During this time, Stephanie and Anika performed a detailed analysis of mortgage performance data to consider the question of whether and how two credit scores, when available, could provide lift over a single score in predicting mortgage delinquencies.

AD&Co in Action: Volunteer & Cultural Days 2026

At Andrew Davidson & Co., Inc. (AD&Co), our values extend beyond the work we do for our clients. Humanity, inclusivity, dedication, citizenship, creativity, and integrity shape how we engage with one another and with our community. This August, members of the AD&Co team took the opportunity to put those values into practice during our Volunteer Day supporting Volunteers of America-Greater New York’s Operation Backpack® and our Cultural Day at Ellis Island.

Recently, aggregators have crossed market borders by issuing residential mortgage-backed securities (RMBS) backed by owner-occupied (OO), GSE-eligible conforming loans. Additionally, conforming mortgage loans have drawn investment interest from insurance companies fronted by aggregators and evaluated by third-party firms. These developments constitute historically rare disintermediations of the nearly monopsonist purchases of conforming loans by the GSEs.

Join Rob Landauer in a conversation with Abe Martin as they discuss his recent Pipeline article, "Modeling the Balance Behavior of HELOC Borrowers." In this episode, they highlight key points from the article as he shares insights into the draw component of HELOCs and provide an update on the beta rele

We’re excited to announce a major addition to the Andrew Davidson & Co., Inc. (AD&Co) team. Industry leaders Kelli Sayres and Gene Park, known for building and scaling leading fixed-income analytics platforms, have joined AD&Co’s Business Development team.

Building on our earlier research on expanded consumer attributes, AD&Co continues to explore how credit data contributes to modeling delinquency and prepayment risk, which are key drivers of mortgage servicing rights cash flows and valuation.

Andrew Davidson recently joined NFM Lending’s Greg Sher on the One On One podcast to discuss our recent white paper, “The Impact of Moving Away From the Tri-Merge Standard.”

AD&Co recently sponsored and attended SFVegas 2026 and Optimal Blue Summit 2026. This post shares the AD&Co team's unique perspectives and key takeaways from attending both conferences.

AD&Co US Mortgage High Yield Indices

The Federal Reserve Economic Data (FRED) portal, housed by the Federal Reserve Bank of St. Louis, has been publishing AD&Co’s CRT indices since 2019. These series posted under the overall name of “US Mortgage High-Yield” include total return rates and credit and option-adjusted spreads (crOAS) – a projected return’s spread over Treasury (in the past, Libor). These series are available going back to 2014-end and tiered by CRT initial supports.