Intelligent Data From Large
Data Sets

AnswerMine Mortgage Services

AnswerMine has extensive experience using granular credit, mortgage and macroeconomic data to successfully isolate predictors of mortgage payment behavior. Using proprietary data mining and analytics, AnswerMine “let’s the data speak” to create a vastly improved measure of a borrowers’ future mortgage payment behavior.

AnswerMine mobilizes our banking and mortgage expertise, proprietary data mining techniques, industry-leading mortgage analytics and affiliated operations resources to measure, manage and monitor the success of portfolio management strategies. Our resources improve loan modification programs, increase the effectiveness of other alternatives to foreclosure and provide economic value and risk analysis of mortgage portfolios.

AnswerMine’s analytic approach is based on proven portfolio
restructuring lessons:

  1. Employing global workout criteria are an inefficient use of capital
  2. Unintended consequences result from "working the system"
  3. Restructuring is most effective when proactive and prior to default
  4. Restructuring needs to be flexible to minimize defaults and re-defaults
  5. Credit quality of loan portfolios requires ongoing monitoring to maximize value

Unlike during periods of protracted rising house prices, in the current economic environment the quality of mortgage portfolios relies heavily on the credit worthiness of the mortgagee. With asset values at historic lows, the ability and willingness of borrowers to pay is a critical factor in portfolio performance. This factor demands more than just FICO scores to understand risk. Using individual credit information coupled with the lessons listed above, AnswerMine can provide the basis for a targeted portfolio management strategy to maximize the net present value to lenders and investors.

Proprietary data mining techniques

AnswerMine uses its proprietary data mining approach incorporating Information Gain Theory (see our Analytic Approach section) to support a targeted portfolio management strategy. By using the entire data set we eliminate traditional sampling biases which plague other approaches and provide our clients with the level of transparency necessary for effective execution and regulatory reporting.
Using individual credit data requires a high level of data handling mandated by the Fair Credit Reporting Act. As a third party processor AnswerMine operates a regulated, audited, and secure data processing facility ensuring a client’s data is safe while being modeled and analyzed by our team of experts.

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