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AnswerMine Mortgage Services

Loan Modification Programs

AnswerMine Mortgage Services focuses on portfolio management and valuation challenges faced by lenders and servicers.

These include:

  1. identifying borrower characteristics which have an impact on loan
    and portfolio value,
  2. implementing client mandated modification programs from portfolio analysis,
    thorough screening for potential “high yield” candidates
  3. initiating program execution (i.e. contacting borrowers and completing
    the restructuring)
  4. evaluating the efficacy of loan modification programs,
  5. providing critical forecasts of bank portfolio performance and impact on future prices and identifying the drivers of success.

Alternative Solutions

AnswerMine is developing efficient alternatives to loan modification programs which are mandated by government programs and could be less costly to lenders and investors than loan foreclosures. These include short sale / deed-in-lieu programs that provide:

  1. Early identification of alternative program success
  2. Availability of investment capital to purchase qualified properties to affect the sale
  3. Mobilization of an aggregation process to reduce the cost of making these assets available for these alternatives
  4. Identifying tenant candidates from the existing borrower base which reduce the social impact of affecting these strategies on communities.

Portfolio Valuation

AnswerMine has recognized the impact of the drastic changes in the mortgage environment on analytics and is leading in developing analytics that reflect the new environment. This environment is where credit and home prices are leading drivers of mortgage portfolio values in addition to interest rates.

AnswerMine’s analytics therefore concentrates on loan level data, accurate home price data and customer credit data to develop an improved credit scoring as input to mortgage valuation models which we call the “AMScore”. Consistent with AnswerMine’s approach to portfolio analytics and the evolving nature of the current market the company stresses active monitoring of model performance and model adjustments as necessary.

  1. asset purchase and sale – AnswerMine’s portfolio valuation services include analyzing portfolios of whole loans or mortgage servicing rights that are offered for sale. We can advise on valuation, expected losses and cash flows, and associated risks.
  2. performance reporting – These services involve the critical periodic surveillance and monitoring of whole loan and servicing portfolios. Deliverables include reporting on valuation, expected losses and cash flows, associated risks and recommended loss management strategies (See Loan Modification Services).
  3. portfolio advisory – Using AnswerMine analytics we can advise firms on the appropriate levels of loan loss reserves and economic capital, pricing of mortgage credit risk and other consulting services.
  4. independent review – AnswerMine can provide an independent review of bank valuation models and assumptions taking into consideration the changes in the mortgage market and the impact of modification programs on portfolio values.