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""Digital Risk"":http://digitalrisk.com/ announced Wednesday the launch of Veritas, a mortgage analytics platform built as a more reliable method for risk analysis.
[IMAGE]Veritas uses a large repository of specific borrower, property, and local real estate market data to provide multi-dimensional insight into the facets of risk. This type of data gathering produces a risk analysis that is more reliable and more meaningful than current one-dimensional risk prediction offerings, the company said in a release.
For example, a Veritas analysis of more than five million loans originated from 2006-2011 showed that borrowers eager to pay revolving debt following a loan modification are more likely to redefault. This information represents a shift in how the mortgage industry understands predictive factors.
""The mortgage industry is relying on outdated methods to determine risk,"" said Peter Kassabov, chairman and chief executive at Digital Risk. ""During the mortgage crisis, high FICO borrowers encountering distress defaulted in huge numbers, yet we still depend heavily on that one more along with CLTV to make lending and loan modification decisions. Veritas has shown there are many more impactful variables that can predict future risk with much more accuracy, and provide the reason why that risk exists.""
Digital Risk provides mortgage risk and compliance management solutions to mortgage industry clients. The company is headquartered in Orlando, Florida, with additional operations in New York, Dallas, Denver, Boca Raton, and Jacksonville.
