BasePoint Analytics, Carlsbad, Calif., has developed BasePoint EPD alert, a pattern recognition solution designed specifically for predicting the risk of early payment default on mortgage loans.
According to the company, the tool delivers a statistical pattern recognition score designed to assess the risk of early payment default for mortgage originators prior to the funding of loans and for investment banking firms prior to the purchase of loans on the secondary market.
Built against historical patterns of both performing and nonperforming mortgage loans from the BasePoint Mortgage Consortium of over 4 million loans, EPD alert provides 50% loan-value early payment default detection at only a 10% review rate, the company adds.