Marketcore’s Transaction Credit Tool Receives Recognition

Connecticut-based ""Marketcore, Inc."":http://www.marketcore.com/, is receiving recognition in a recently released white paper from the ""National Association of Insurance Commissioner's Center for Insurance Policy and Research (CIPR0"":http://www.naic.org/cipr_home.htm. The intellectual property development company was cited in the group's report for its ""inventive"" Transaction Credits tool, which provides incentives to originators, aggregators, and investors who use the system to report ""events related to the value of underlying mortgages.""

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CIPR's white paper focused on the recommendation of a private sector solution for lending issues that would establish a system in which ""an alliance of buyers, regulators, and the general public can insist on greater transparency and effective disclosure of sufficient information to allow residential mortgaged-backed securities investors and regulators to have greater confidence in the market.""

David M. Rowe, a risk manager and journalist who served as a contributing author for CIPR's white paper, described Mareketcore's tool as a driver for ""market-driven transparency""

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after he encountered the product while participating in the ""Office of Financial Research"":http://www.treasury.gov/initiatives/wsr/ofr/Pages/default.aspx Discussion Group.

Rowe stated of Marketcore's platform, ""While considerable thought and legislative effort have been devoted to revising the regulatory framework, all such initiatives inevitably encounter passive resistance on the part of the industry. I believe these efforts need to be supplemented by a system of positive private incentives at all levels, from mortgage borrowers to institutional investors, to reward continuing disclosure of the details necessary for effective security analysis.

""The official credit rating agencies clearly failed to warn investors of the potential dangers inherent in some segments of the securitized mortgage market. This leaves them in no position to be the instrument of its revival. Only a massive infusion of transparency driven by positive economic incentives, which Marketcore's invention induces, will move us beyond the current reliance on government guarantees to create the credit flows necessary for a robust recovery in the housing market,"" added Rowe.

Michael Erlanger, Marketcore's managing principal responded to CIPR's white paper, saying, ""Our company's inventions, memorialized in a suite of issued patents and pending filings, are just now being acknowledged as a uniquely American innovation, capable of resolving the systemic issues that have undermined confidence in financial markets. Importantly, ours is a method that involves all market participants in an encompassing approach based on disclosure of critical financial information . . . We are excited to be part of a forward-looking process that aligns all finance and risk management with twenty-first century technology.""