Capital Markets

Traditional mortgage valuation methods, while previously sufficient, need to be enhanced to address risks associated with continued home price depreciation. Adding visibility into the underlying risk in mortgage-backed securities and whole loan pools can improve your valuation strategies. TransUnion, in collaboration with First American CoreLogic, has developed a new solution—Consumer Risk Indicators—that can provide you with the current and historical loan-level consumer data you need to refine risk analyses.

Using aggregate-level home price appreciation and assumed loan-to-value data limits your view into individual consumer risk. TransUnion Consumer Risk Indicators for Mortgage-backed Securities leverages sophisticated matching algorithms that link non-agency mortgage-backed securities to consumer-level credit information. These algorithms create high match rates, and confidence in those matches, which result in greater insight into consumer-level risk. Use this new insight to assess estimated cumulative defaults and improve valuations.

In whole loan pools, static views of consumer credit information do not provide a complete picture of potential risk. TransUnion Consumer Risk Indicators for Whole Loans provides you with a historical time-series of data for borrowers, which is more predictive of risk than using current credit reports alone. Implement this new data quickly and easily through direct electronic delivery.

Contact TransUnion today to learn more about how we can help you gain better insight into default rates, valuations and price discovery.