Equifax Inc. says it has added the FICO credit score and several new data variables to its ABS Credit Risk Insight – a data solution for the mortgage-backed securities (MBS) industry. With these enhancements, ABS Credit Risk Insight allows investors to better predict loan default and prepayment loan performance, as well value securities using extensive borrower credit data and highly accurate risk models, Equifax says.
Recent analysis from Equifax reveals the need for greater transparency into up-to-date borrower information on mortgage loans, the company adds. As an example, Equifax points to data that showed that, as of December 2009, 18% of ‘current," non-agency securitized loans identified as ‘owner occupied’ at origination no longer appear owner-occupied today.
By providing both the FICO and VantageScore risk models, ABS Credit Risk Insight allows investors to select the score that best addresses their business needs, Equifax says. Investors can then link the borrower credit data to mortgage loan-level data on the entire universe of non-agency mortgage securities.
"Given unemployment levels, it is critical that investors have fresh information on changes in borrower credit activity,’ says Steve Albert, vice president, Equifax Capital Markets.
Among other solution enhancements, Equifax says it has added multiple, unique data variables that provide additional detail on all mortgage and home equity payments, owner-occupancy, bankruptcies and performance on past mortgages.