Experian Offers Default-Predicting Technology for Non-Agency MBS

Global information services provider ""Experian"":http://www.experianplc.com announced Monday the launch of CreditHorizons for Securities, a data-feed product that the company says provides ""the missing link to understanding the true creditworthiness"" of the underlying borrowers in secondary market mortgage deals.

[IMAGE]

CreditHorizons for Securities consists of anonymized U.S. consumer credit profiles that have been matched to the private-label mortgage-backed securities (MBS) deals in a loan-level database provided by ""First American CoreLogic"":http://www.facorelogic.com.

Experian explained that investors who currently utilize only traditional loan-level data will find that CreditHorizons for Securities affords them a new set of influencers in delinquency and loss forecasting. The company says its approach will help investors optimize

[COLUMN_BREAK]

pricing strategies, improve risk management and hedging strategies, and increase confidence in residential MBS buy and sell decisions.

""Monthly trustee and servicer data sets provide a limited foundation for predicting payment patterns,"" said Ethan Klemperer, general manager of Experian Capital Markets, headquartered in New York. ""To compete profitably in today's market, investors need upgraded valuation methods with increased transparency and predictive power. We're delighted to work with First American CoreLogic to launch CreditHorizons for Securities, providing the critical behavioral data needed to determine the true value and future payment trend of clients' securities.""

George Livermore, president of the data and analytics segment for the First American Corporation added that by augmenting existing modeling with consumer credit information, investors obtain a holistic view of the underlying collateral and can better predict delinquency and default probabilities for their residential MBS portfolios.

Experian's CreditHorizons for Securities offers a predefined set of more than 50 anonymized consumer credit data variables, hand-picked for their predictive ability by Experian's team of credit experts. The company says by maintaining a relatively small number of variables, it can ensure that the product is user-friendly and easy for secondary market participants to implement.