Collateral Analytics, a provider of automated valuation solutions and real estate analytic products, has launched the CA Credit Risk Model, a new automated tool that predicts the expected profitability of a mortgage.
The patent pending product is designed to offer quantitative measures of the risk and cost of potential borrower default embedded in a residential mortgage.
The CA Credit Risk Model combines CA's industry leading automated valuation model (AVM) with its proprietary home price forecast and mortgage performance models to predict the expected profitability of a mortgage.
‘Our new Credit Risk Model can be used to help lenders set the interest rate that should be charged for a particular loan based on its loan-to-value ratio, borrower's credit score, and specific loan and property traits,’ says Michael Sklarz, president and CEO of Collateral Analytics, in a release. ‘As such, it can be viewed as a pricing tool for an individual mortgage, mortgage portfolio, or an indicator of the credit risk among different real estate markets.’
For more information about Collateral Analytics and its comprehensive mortgage management solutions, click here.