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Residential housing markets continue to be a significant concern in the US economy. Home price decreases have not yet slowed in the most volatile markets. Valuations will continue to be uncertain due to market distortions. Accurate home valuation is the dominate factor in managing risk retention and exposure analysis.
Montana Analytics has made recent advancements in developing accurate measurements of risk exposure and quantifying sensitive local markets. We offer applied solutions to assess residential housing supply, demand and pricing, as well as the propensity for price declines. Let our proven experience providing analytical solutions to executive risk managers serve you.
The Residential Housing Analytics solution includes the following components:
- Predicting the Probability of Home Price Decline
- Econometric model of the probability of housing price decline
- MSA and State/County level analysis of potential risk
- Monthly and Quarterly updates of key information
- MSA and State predictions linked directly to zip code on loan pools
- Enables Credit Risk Management:
- Grouping of assets located in weak or risky geographic areas
- Risk ranking of assets to determine valuation adjustments
- Risk reserving adjustments to capture local conditions
- Specific market focus of loss mitigation efforts
- Enables Whole Loan – Portfolio Bidding/Pricing analytics:
- Selection of weak/strong assets within pools
- Price/valuation driven pricing adjustments
- Competitive advantage relative to market bidders
- Quantitative Assessment of Home Demand and Local Market Analysis
- Deterministic assessment of local housing markets
- Designed around classic supply / demand modeling framework
- Includes use of county-level unemployment statistics
- Enables Market Analysis and Valuation:
- MSA and state analysis of housing markets
- Specific knowledge of local market conditions
- Enables incorporation of local details into corporate forecasting
- Allows future development of local prepayment modeling
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