Insurance

LoanDynamics (LDM) offers prepayment, default and loss severity on a pool of loans and how changes in interest rates and home prices will impact loan values. Trusted across the mortgage industry to forecast borrower behavior, LoanDynamics helps to manage asset liability and forecast credit loss to perform dependable valuations and scenario analyses. LoanDynamics is available through a variety of third-party vendors.

LoanKinetics (LK) is our proprietary application that evaluates the inherent risk, value and performance of a whole loan, relative to other loans. Built on our LoanDynamics and MacroDynamics models, it can also perform traditional stochastic and user-defined scenario analyses. LoanKinetics provides a credit analysis to determine loan profile rankings, expected loss and tail risk, and ALLL (the Allowance for Loan and Lease Losses). It also supports mortgage insurance analysis by helping to size initial premiums, or test the value and adequacy of existing premiums. LoanKinetics users benefit from access to full documentation on our analytics and models, including regular assessments on model performance, as well as our Model Updates and Pipeline articles where we report on model adjustments.

LoanKinetics is available directly from AD&Co.

RiskProfiler (RP) is our comprehensive valuation solution that evaluates the inherent risk in mortgage-backed securities by incorporating standard and advanced valuation techniques. It is the only application that brings together all of our proprietary LoanDynamics Model, MacroDynamics Models, and OAS Subroutine into a single, flexible platform to effectively capture risk. As a database-driven front end-user valuation system, RiskProfiler offers built-in reporting, parallel and distributed (cluster) computing and has the capability to store positions and past performance. It is available directly from AD&Co.

MARS performance reports help evaluate the robustness of our models, comparing our model projections against actual market results.

Our market analysis reports consist of a weekly prepayment-risk-and-option-adjusted analysis, across the coupon stack, of the agency and government passthrough markets.

The CRT Monitor is a monthly report analyzing traded tranches of Agency Credit Risk Transfer deals. We derive a credit risk rating, our CreditProfile Category (CPC), the underlying credit metrics, and Option-Adjusted Spreads (OAS) given market levels at the close of a month. The underlying analysis is performed using RiskProfiler, our end-user valuation solution, and LoanDynamics credit model.

HPI Outlook is a quarterly report that explains our forecasts for the 25-MSA Composite Index and five geographical indices: US National Index, Los Angeles, Miami, New York and Phoenix Metropolitan Statistical Areas. These forecasts are generated by our third-generation HomePriceDynamics model.