Mortgage fintech provider RiskSpan has announced the addition of a mortgage servicing rights (MSR) application to its Edge Platform.
The new app will expand RiskSpan's loan-level mortgage analytics to MSRs, an asset class whose cash flows have previously been challenging to forecast at the loan level. Unlike conventional MSR tools that assume large numbers of loans bucketed into "rep lines" will perform identically, the Edge Platform's approach makes it possible to forecast MSR portfolio net cash flows, and run valuation and scenario analyses.
RiskSpan's MSR platform will integrate the company’s proprietary prepayment and credit models to calculate option-adjusted risk metrics, while also incorporating a range of client-configurable input parameters (costs and recapture assumptions, for example).
"Our cloud-native platform has enabled us to achieve something that has long eluded our industry–on-demand, loan-level cash flow forecasting," said RiskSpan CEO Bernadette Kogler. "This has been an absolute game changer for our clients."
Loan-level projections enable MSR investors to combine and aggregate loan-level cash flow results on the fly–including climate risk and responsible ESG analysis. The flexibility afforded by RiskSpan's computing framework allows for complex net cash flow calculations on hundreds of thousands of individual mortgage loans simultaneously.
RiskSpan recently assembled a panel of industry experts to tackle the topic “The Intersection of Climate Risk Management with Mortgage Loan & MSR Investing” in a virtual roundtable. Featured speakers included: Faith Schwartz, Founder & CEO, Housing Finance Strategies; Janet Jozwik, Senior Managing Director and Head of Climate Risk, RiskSpan; Dan Raizman, Global Resilience Manager, Verisk Analytics; Mark Hanson, SVP, Freddie Mac; Kurt Johnson, CRO, Mr. Cooper; Sean Becketti, formerly of Freddie Mac; and Bernadette Kogler, CEO, RiskSpan. Click here to access this virtual roundtable.