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Profitability Case Study: Mortgage Portfolio Operation Leverages JWL to Assess the Ongoing Profitability of its Business
A mortgage portfolio lender was interested in upgrading its P&L process by leveraging the Javelin Whole Loan (JWL) Platform. The solution required integration with the existing profitability system used by the firm but tying in the JWL’s suite of analytic models that accurately assess the competing risks of credit and interest rate risk simultaneously across the bank’s varied mortgage products.
February 24, 2017
Pricing & Valuation Case Study: Large Nonbank Mortgage Aggregator Leverages Javelin Whole Loan (JWL) Platform for Pricing and Valuation Analysis
A large nonbank mortgage aggregator wanted to improve the granularity and accuracy of its pricing used for its QM-eligible correspondent lending activities. The current process was labor intensive and did not capture as many loan level risk attributes as it could.
The client, the mortgage servicing division of a major U.S. bank holding company, needed to meet regulatory requirements set forth by the FHFA in the Home Affordable Refinance Program (HARP). The client was in need of whole loan analytics tool to forecast the risk associated with the loan modification program for their residential mortgage servicing portfolio of $50+ billion. The desired tool needed to be sufficiently flexible to handle loan valuation at multiple levels of granularity, as well as be adaptable to the existing process.
Stress Test Case Study: Leveraging JWL for Stress Testing Project for a Medium-Size U.S. Commercial Bank
Regulators had identified weakness in the bank’s risk management processes for analyzing the impact of stress economic scenarios on its consumer risk exposures. The bank needed to accelerate its stress testing capabilities beyond its in house capabilities by leveraging the Javelin Whole Loan (JWL) Platform for analyzing various stress scenario impacts.
A large community bank wanted to migrate away from a roll rate methodology that was subject to more manual error and not easy to run each quarter to a more analytical and efficient approach. The bank did not have much modeling expertise so the enhanced methodology needed to be easily integrated into existing risk management workflow. Five Bridges approached the client about using the Javelin Whole Loan(JWL) analytics platform for its easily adapted and streamlined UI.
Reinsurance Case Study: Reinsurance Company Leverages Javelin Whole Loan (JWL) Platform and Javelin Structured Products (JSP) to Analyze GSE Credit Risk Transfer (CRT) Structures
A reinsurance company was looking to invest in Fannie Mae and Freddie Mac credit risk sharing transactions but did not have expertise in developing analytic models to understand the credit and prepayment risk associated with the underlying collateral. The firm partnered with FBA to leverage the Javelin Whole Loan (JWL) Platform and JSP to generate bids for active deals
This mid–sized commercial bank client uses various tools to help identify retention and marketing opportunities in the bank’s mortgage portfolio. Competition for borrowers in their footprint is strong so they needed to increase the ROI on marketing opportunities. Identifying quality retention candidates is critical to proactively maintaining relationships with existing customers.
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.
February 22, 2017
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