CoreLogic Expands Prime Jumbo Modeling In Its RiskModel Analytics System


CoreLogic has enhanced its RiskModel analytics system – used to forecast future residential mortgage prepayments, defaults, losses and cashflows – in order to expand the system's prime jumbo modeling capabilities.

Now, users can assess default and prepayment risk of new prime jumbo loans originated under tighter underwriting guidelines as well as post-crisis private-label residential mortgage-backed securities.

The new prime jumbo model also now leverages unemployment as a macroeconomic modeling variable, CoreLogic reports. As such, it provides a more robust and comprehensive solution for regulatory requirements, such as Dodd-Frank Act stress testing and comprehensive capital analysis and review stress testing.

In addition, a separate model for interest-only loans and the incorporation of borrower debt-to-income enables users to effectively evaluate the future performance of non-qualified mortgages.

‘Prime jumbo and super jumbo mortgages have accounted for more than 19.4 percent of all U.S. 2015 originations and continue to be the only asset class with access to liquidity in the private-label secondary market,’ says Olumide Soroye, managing director of information solutions for CoreLogic, in a release. ‘We have significantly upgraded RiskModel to give originators, banks and investors the insight they need to measure risk and opportunity in their jumbo investments – whether they are in the pipeline, portfolio or in post-crisis private-label securities.’

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