Credit Risk Analytics

Mortgage credit risk and mortgage risk retention have been a key focus of leading mortgage lenders as risk ownership has driven net income.  Expansion of lending into higher margin subprime markets has increased both opportunity and risk.

Montana Analytics has been actively providing critical advisory solutions to the nation’s leading Banks and Mortgage Banking companies. Our Credit Risk Analytics Solution includes the following components that integrate with portfolio analysis to produce an appropriate executive decision-making framework:

• Loan Level Credit Default Estimation
  • Quantifies Default Risk
    
    
• Measures Timing of Defaults
  • Loan Level Loss Analysis and Calculation     
  • Quantifies Loss Exposure
    
    
• Geographic market risk assessment
• Identifies Market Risk
  
  
• Holistic risk modeling framework includes:
• Default events and timing
• Prepayment events and timing
• Home price appreciation
• Interest Rate estimation
• Probability based outcomes
• Aggregation to Portfolio Level Analysis
• Manage Portfolio Risk exposures
• Analysis of Exposure and Loss Reserving
• Establish and Manage Reserves
• Portfolio Valuations for Bulk Purchase or Sale
• Value Risk versus Return
• Advanced Statistical programming
• Utilizes SAS programming for speed