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Fitch Launches New CRE Risk Model.(Brief Article)

Mortgage Servicing News

| February 01, 2004 | COPYRIGHT 2004 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

CreditVantage, a division of Fitch Risk, and the Boston-based Property & Portfolio Research have teamed up to launch a commercial real estate credit model.

The alliance seeks to ally PPR's commercial real estate analytics capabilities with Fitch Risk's quantitative modeling capabilities.

Real estate lenders, regulators and risk managers are increasingly looking for an empirically validated model to quantify and manage commercial mortgage risk, according to Fitch Risk, an affiliate of Fitch Ratings, the credit rating agency.

The two companies are also seeking to benefit from the need for such a model as Basel II implementation draws closer and as commercial real estate market fundamentals continue to suffer the after effects of the economic downturn.

The model, which Fitch Risk says is already used by regulators and some financial institutions, is based on a sample of defaulted and performing commercial real estate loans and measures the probability of default of a loan, portfolio or securitized ...

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Source: HighBeam Research, Fitch Launches New CRE Risk Model.(Brief Article)

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