San Diego-based ""MDA DataQuick"":http://www.dataquick.com/default.asp, a division of ""MDA Lending Solutions"":http://www.mdasolutions.com/ and a provider of property data to real estate and mortgage professionals, recently announced[IMAGE]
that Burbank, California-based ""Lockheed Federal Credit Union"":http://lockheedfcu.com/ (LFCU) has selected MDA DataQuick's collateral validation to help the credit union, which has $2.9 billion in assets, proactively identify and manage loan risk and set loan loss reserves.
""As the nation is plagued with defaults and foreclosures, it is vitally important that we leverage the most accurate data and advanced analytics to insulate our portfolios against risk,"" said Ana Fonseca, SVP and CFO of LFCU. ""As a healthy financial institution, we are best positioned to make decisions that serve our members and maximize the value of the mortgages they hold with us. MDA DataQuick not only provides robust data, but also truly understands our credit union and the emphasis we put on serving our members.""
In order to assess one dimension of risk in its real estate portfolio and meet the regulator's requirement of a multi-dimensional portfolio risk analysis, MDA DataQuick partnered with LFCU to determine five market area risk levels. The use of neighborhood-level data and analytics,[COLUMN_BREAK]
better enabled LFCU to identify and meet loan loss reserve requirements, evaluate and manage potential risk in individual loans or groups of loans, and understand the overall value of the credit union's loan portfolio.
""LFCU and MDA DataQuick worked together to identify and analyze our portfolio in a worst case scenario as well as several alternate scenarios,"" continued Fonseca. ""We feel confident our loan loss reserve is adequate, and we have a grasp of the equity in our portfolio.""
According to MDA DataQuick, collateral validation also includes a forecast. This provides lenders and servicers with the projected market value of the property for the next 30, 60, or 90 days. The tool utilizes MDA DataQuick's proprietary Neighborhood Level Housing Price Index (HPI), which collects complete real estate and sales data from across the country. Compared to the industry standard of county-level data, the HPI narrows the data down to the ZIP code plus one or two, providing lenders with trends and forecasts at the most local level.
A full collateral validation report includes market value, HPI trending, and other supporting property information to help automate the valuation review and aid in the reconciliation process. By incorporating industry-best practices with MDA DataQuick's property data, lenders can quickly evaluate individual loans and better prioritize and execute their default strategies, MDA DataQuick said.
While the downturn in the mortgage industry negatively impacted many mortgage bankers and servicers, it has presented an opportunity to credit unions that make sound loans and are concerned with proactively identifying loan risk within their portfolio, explained John Walsh, president of MDA DataQuick. By using the most accurate and detailed data available, Walsh said LFCU is proving the health of its loan portfolio and the health of the credit union overall. As a result, it is better serving its borrowers and members.