Collateral Analytics Unveils New Credit Risk Model

Out of Honolulu, Collateral Analytics announced the launch of CA Credit Risk Model, a new product intended to offer comprehensive, quantitative measures of the risk and cost of potential borrower default in a residential mortgage.

With the new model, Collateral Analytics combines its leading automated valuation model with its proprietary home price forecast and mortgage performance models, painting a clearer picture of a mortgage’s expected profitability.

Michael Sklarz, president and CEO of Collateral Analytics, explained how the Credit Risk Model can also help lenders set interest rates on loans based on loan-to-value ratios, borrowers’ credit scores, and specific loan and property traits.

“As such, it can be viewed as a pricing tool for an individual mortgage, mortgage portfolio, or an indicator of the credit risk among different real estate markets,” Sklarz said.