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NEWS
Quantrix Develops Mortgage Modification Model to Help Lenders Reduce Mortgage Defaults
PORTLAND, ME – March 19, 2009 – Quantrix today announced an online, interactive Mortgage Modification Model to help mortgage lenders discover the best way to modify existing loans to maximize profitability while minimizing borrower foreclosure rates. Using techniques from the “Mod in a Box” loan modification model created by the FDIC in conjunction with user-provided and current-market data, lenders can model the impact of adjusting housing-to-income (HTI) ratios as well as rapidly fluctuating house values. The model presents multiple scenarios to evaluate the best options for modifying existing loans. Quantrix delivers business modeling and analytics software and services to customers in 50 countries; it teamed with financial modeling consultancy, Costello Consulting, to develop the online model (http://models.quantrix.com/p/loanmod).
“Lenders are modifying tens of billions of dollars worth of mortgage loans, yet failure rates in many cases still exceed 50 percent. Foreclosure is perhaps the worst option for lenders in terms of profitability, yet the current FDIC model is neither robust enough to test assumptions and analyze options, nor does it accommodate rapidly changing market dynamics,” says Chris Houle, CEO, Quantrix. “Our model helps lenders incorporate data relevant to their loans, evaluate more scenarios, measure the impact of a wider variety of factors, and make more informed modification decisions.”
With Quantrix’s interactive model, users enter loan-specific criteria such as loan amount, interest rate, amortization term, current unpaid principal balance (UPB), and months past due along with market-specific data such as current property value, current Freddie rate, and average housing price appreciation forecast. For demonstration purposes, the model then provides three scenarios: FDIC-HTI Tiers, FHA measuring 29% HTI, and a conservative case measuring 25% HTI, along with the dollar benefit of each scenario’s modification over that of foreclosure. While the online model makes a number of assumptions for illustrative purposes, Quantrix also offers a customized version of the model in which lenders can incorporate data and structure specific to their portfolios. The model can then be scaled to evaluate large pools of loans.
“By replicating and expanding upon the FDIC modification model, Quantrix and Costello Consulting have created a model that is adaptable to market dynamics and business needs, while delivering improved outcomes to both the lender and the borrower.” says Edward Costello, Principal of Costello Consulting, LLC, which provides financial modeling and management expertise to leading lending institutions.
Quantrix Modeler’s multidimensional business modeling and analytics software enables financial professionals to break away from the restrictions of spreadsheet technology to develop financial models of the highest integrity, flexibility, and transparency. The Mortgage Modification Model leverages the new Quantrix Publisher product for publishing interactive models online.
About Quantrix
Quantrix delivers business modeling and analytics (BMA) solutions and services to customers in 50 countries with resellers in the United Kingdom, China, Australia, France, Germany, Mexico, Chile, Israel, South Africa, and Brazil. Quantrix Modeler provides unprecedented business insight by enabling companies to develop accurate, secure, and dynamic forecast, budget, planning, risk, and data models. Quantrix Modeler delivers rapid return on investment by empowering businesses to break away from restrictive two-dimensional spreadsheets and complicated modeling and business intelligence tools. For more information about Quantrix Modeler, to inquire about a speaker for your event, or to activate a free 30-day trial, visit www.quantrix.com or call +1 207.775.0808.
Media Contact for Quantrix:
Alison Harris
Harris Media Services
+1 207.829.4500
alison@harrismediaservices.com
“Lenders are modifying tens of billions of dollars worth of mortgage loans, yet failure rates in many cases still exceed 50 percent. Foreclosure is perhaps the worst option for lenders in terms of profitability, yet the current FDIC model is neither robust enough to test assumptions and analyze options, nor does it accommodate rapidly changing market dynamics,” says Chris Houle, CEO, Quantrix. “Our model helps lenders incorporate data relevant to their loans, evaluate more scenarios, measure the impact of a wider variety of factors, and make more informed modification decisions.”
With Quantrix’s interactive model, users enter loan-specific criteria such as loan amount, interest rate, amortization term, current unpaid principal balance (UPB), and months past due along with market-specific data such as current property value, current Freddie rate, and average housing price appreciation forecast. For demonstration purposes, the model then provides three scenarios: FDIC-HTI Tiers, FHA measuring 29% HTI, and a conservative case measuring 25% HTI, along with the dollar benefit of each scenario’s modification over that of foreclosure. While the online model makes a number of assumptions for illustrative purposes, Quantrix also offers a customized version of the model in which lenders can incorporate data and structure specific to their portfolios. The model can then be scaled to evaluate large pools of loans.
“By replicating and expanding upon the FDIC modification model, Quantrix and Costello Consulting have created a model that is adaptable to market dynamics and business needs, while delivering improved outcomes to both the lender and the borrower.” says Edward Costello, Principal of Costello Consulting, LLC, which provides financial modeling and management expertise to leading lending institutions.
Quantrix Modeler’s multidimensional business modeling and analytics software enables financial professionals to break away from the restrictions of spreadsheet technology to develop financial models of the highest integrity, flexibility, and transparency. The Mortgage Modification Model leverages the new Quantrix Publisher product for publishing interactive models online.
About Quantrix
Quantrix delivers business modeling and analytics (BMA) solutions and services to customers in 50 countries with resellers in the United Kingdom, China, Australia, France, Germany, Mexico, Chile, Israel, South Africa, and Brazil. Quantrix Modeler provides unprecedented business insight by enabling companies to develop accurate, secure, and dynamic forecast, budget, planning, risk, and data models. Quantrix Modeler delivers rapid return on investment by empowering businesses to break away from restrictive two-dimensional spreadsheets and complicated modeling and business intelligence tools. For more information about Quantrix Modeler, to inquire about a speaker for your event, or to activate a free 30-day trial, visit www.quantrix.com or call +1 207.775.0808.
Media Contact for Quantrix:
Alison Harris
Harris Media Services
+1 207.829.4500
alison@harrismediaservices.com
