RISMEDIA, Oct. 16, 2007-Fidelity National Information Services, Inc. (FIS) announced the availability of a unique portfolio management tool that enables lenders, servicers and investors to identify and mitigate prepayment and default risk on an individual loan or portfolio basis.
This new offering integrates the proprietary default and prepayment algorithms from the FIS Applied Analytics division (formally Applied Financial Technology) with property valuation and pricing trend data from FIS Valuation Solutions and FIS Data Solutions divisions. According to the company, in combining these previously distinct offerings, FIS has unlocked the necessary elements required to accurately assess default and prepayment risks within real estate loan portfolios.
“There is a compelling nexus between prepayment and default propensity and other critical business drivers, such as responsible risk policy, borrower retention campaigns, default staffing models, and buy and sell pricing opportunities for mortgage servicing rights valuation and mortgage-backed securities,” said Greg Whitworth, president of the FIS Loan Portfolio Solutions division. “These drivers affect virtually all of our mortgage origination, servicing and investor clients and are precisely why we synergized our vast data and valuation assets with our Applied Analytics quantitative scores and CMO loan data base. The predictive qualities of the calculated scores are very impressive and demonstrate a significant profit and risk mitigation opportunity for our client base.”
“In our view, lending and risk-based pricing models centered principally on borrower credit scores have proven largely incapable of finely predicting risk in real estate portfolios,” said Michael Bykhovsky, president, FIS Applied Analytics. “Because of the confluence of other critical variables not measured in a credit score, behavior cannot be fairly predicted unless the model equally controls for actual loan attributes, borrower credit worthiness and property values. There are simply too many variables to risk billions of dollars on a single credit-score-centric model. The ability to incorporate FIS’ vast data resources with our real estate valuation and trend data ensures that our clients will have scores with a superior predictive quality that is continuously tuned.”
For more information, visit www.fidelityinfoservices.com.