Today at AD&Co's 21st Annual Conference, "Managing Financial Climate Change: Strategic Analytics for the New Normal," the firm announced the release of Agency LoanDynamics™ Model (Agency LDM) and the introduction of LoanKinetics - the latest products in AD&Co's VECTORS™ suite of mortgage analytics and solutions.
Agency LDM is AD&Co's newest and most advanced approach to modeling prepayments for Agency pools and conforming loans. It explains the voluntary and involuntary termination behavior for agency mortgages, made possible through a series of modeling innovations and incremental data available from the agencies.
"Agency LDM incorporates things we learned during the crisis and is a new way of thinking about modeling. It is a completely un-tuned model, and deals with HARP organically. The cross-sectional effects in the model can better quantify the changing borrower dynamics. Agency LDM is really the next frontier in prepayment models," said Sanj Chatterjee, Product Manager for Loan Models at AD&Co. "We would like to thank all our clients who provided valuable feedback during the beta period. We are working diligently with our vendor partners to integrate Agency LDM and will announce the availability of these systems as they come on line."
LoanKinetics is a multi-functional whole loan credit performance, pricing and valuation platform that allows users to evaluate legacy and newly originated residential loans in the context of pricing/valuation, credit risk and related regulatory issues. It leverages VECTORS™ LoanDynamics and Credit OAS as well as newly developed credit-loss forecasting methods.
"LoanKinetics combines our best analytical ideas and models to provide a consistent, yet flexible, platform for a wide range of credit analyses on loans. We think originators, securitizers, loan portfolio and risk managers can all benefit from its valuation, pricing, credit risk analysis and attribution capabilities, whether through our interface, a vendor interface or through a custom interface of their own design," said Rick Ellson, Product Manager for LoanKinetics.
LoanKinetics can be integrated into proprietary or third-party systems or can be employed by AD&Co's team of consultants to perform custom tasks.