RiskSpan, a technology company and source for data management and analytics for residential mortgage and structured products, has incorporated Flexible Loan Segmentation functionality into its Edge Platform.
The new functionality offers users the option of alternating between rep-line-level analysis and loan-level analytics, depending on the purpose of the analysis.
The cloud-native Edge Platform offers the computational scale necessary to perform loan-level analyses and fully consider each loan’s individual contribution to a mortgage or MSR portfolio’s cash flows. This is particularly useful when pricing new portfolios, taking property-level considerations into account, and managing tail risks from a credit/servicing cost perspective.
For situations where speed requirements dictate the use of rep lines (such as for daily or intra-day hedging needs), the Edge Platform’s new Flexible Loan Segmentation affords users the option to perform valuation and risk analysis at the rep line level, says the company.
Analysts, traders and investors use Edge’s flexible calculation specification to run various rate and HPI scenarios, key rate durations, and other calculation-intensive metrics. Segment-level results run at both loan and rep line level can be easily compared to assess the impacts of each approach. Individual rep lines are easily rolled up to quickly view results on portfolio subcomponents and on the portfolio as a whole.
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