CoreLogic has released an enhancement to CoreLogic RiskModel, an advanced analytics system that forecasts future residential mortgage prepayments, defaults, losses and cash flows. The latest release includes enhancements that significantly expand the system’s prime jumbo modeling capabilities for recently issued private label residential mortgage backed securities (RMBS), legacy prime pools, and new prime jumbo loans originated under tighter underwriting guidelines.
Now leveraging unemployment as a macroeconomic modeling variable in addition to home prices and interest rates, the new Prime Jumbo model provides a more robust and comprehensive solution for regulatory requirements such as DFAST and CCAR stress testing. In addition, a separate model for interest-only loans and the incorporation of borrower debt-to-income ratio enables users to effectively evaluate the future performance of non-qualified mortgages (non-QM).
“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,” said Olumide Soroye, managing director of Information Solutions for CoreLogic. “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.”