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Quality Control on Appraisals Case Study: Large U.S. Commercial Bank Leverages MAP AVM to Identify and Eliminate Appraisal Fraud


The client, a U.S-based commercial bank with a large residential mortgage portfolio, was facing concerns due to potential fraud with short-sale properties within its portfolio. In order to address these concerns, the client required a model-generated market value to use as a second opinion on short sale appraisals. The client determined that an automated valuation model(AVM) would be a perfect fit for their quality control business requirements. Five Bridges approached the client and identified MAP(Market-Assessed Price) AVM as a potential solution because of its speed and accuracy in generating market values for residential properties.


Valuation Due Diligence Case Study: Large Mortgage Originator Utilizes MAP AVM for Initial Stages of Portfolio Property Valuation Due Diligence


The bank’s team responsible for reconciliation and researching property values within appraisals, BPOs and other valuation products were using online property estimates to compare as part of their due diligence, allowing for inaccuracies in their process. The bank needed an accurate, reliable, high hit rate tool that provided a quick turnaround of information.


Default Services Case Study: Large Non-Bank Originator Leverages MAP Automated Valuation Model for Its Default Servicing Group


The client, a major U.S non-bank mortgage lender, required a tool for assessing market values for properties in their portfolio that were in 60+ days default. The client needed to have a robust tool with the capability to gather subject property DNA for investigation purposes within Default Servicing division—their existing methodology involved online searches to gather information.


Collateral Valuation Case Study: Mid-Sized Commercial Bank’s Mortgage Unit Leverages MAP AVM for Periodic Updating of Its Held-for-Investment Mortgage Portfolio Collateral Values


The consumer risk management group determined that as the bank’s mortgage whole loan portfolio had grown, its ability to conduct periodic updated valuations of collateral underlying those mortgages was limited. The bank had expanded its mortgage lending activities beyond its historic footprint and so it wanted to understand how changes in collateral value would translate into current LTVs that in turn would influence delinquency and default performance of the portfolio over time.


Pre-Application Analysis/ Underwriting Case Study: Originator Seeks Process Improvement in Pre-Qualifying Borrowers by Leveraging MAP AVM


To increase pull-through rates on borrowers and reduce costs associated with their mortgage banking business, a large originator sought to enhance the underwriting process by increasing the automation of collateral valuation. For the past three years this lender had experienced an increase in fallout of applications to loans and much of this was attributed to a lack of tools to ascertain the underwriting and collateral quality of the property.


Trading Case Study: Large U.S Investment Bank Licenses JSP to Optimize Their MBS Trading Desk Operations


The client, a large U.S investment bank, wanted to improve their fixed income trading operations. Their trading desk staff were using multiple systems and manual processes to conduct due diligence on structured products. The client was in need of forward-looking price and yield analytics tools with improved granularity to make more informed trading decisions. Five Bridges approached the client regarding our RMBS analytics platform,Javelin for Structured Products (JSP).


Hedge Fund Risk Management Case Study: Hedge Fund Leverages JSP to Conduct Risk Management Analysis


A large hedge fund had expanded its investment strategy to include a range of consumer and commercial loan products and thus needed to enhance its ongoing risk assessment of this growing portfolio. The fund was an investor in both credit and interest rate risk-sensitive structured securities and by using a proprietary set of market models could trade opportunistically across a range of consumer and commercial structured securities in optimizing their exposure to these risks.


OTTI Impairment Case Study: Publicly-Traded Investment Bank Leverages JSP Platform for Conducting OTTI Impairment Analysis


A publicly-traded investment bank needed to enhance OTTI impairment analysis on its consumer and commercial structured securities portfolio that included CDOs, and various asset-backed securities and other credit derivatives. Specifically, the complexity of structured securities and the wide range of consumer and commercial product types underlying the securities made the process extremely cumbersome and prone to potential error in estimating whether the company could recover the amortized cost basis of their securities.


Risk Management Case Study: Applications in Consumer Risk Management Using Javelin Whole Loan (JWL) Platform by a Large Credit Union


Significant growth over the last few years by a large credit union had outstripped the company’s risk management limited analytic capabilities for understanding changes in the quality of loan originations and their portfolio performance. Bank management was searching for a full service set of analytic tools that could evaluate credit and prepayment risk of various types of consumer assets at the loan level over the loan lifecycle.


Portfolio Analysis Case Study: Large Commercial Bank Leverages Javelin Whole Loan (JWL) Platform for Portfolio Analysis


A large commercial bank was looking to enhance their consumer loan portfolio analytic capabilities. Ideally it wanted to be able to use one application to conduct credit and prepayment analysis of multiple consumer asset types.


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