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Scottsdale, AZ-Response Analytics Inc., a provider of optimization technology for the financial services industry, has reached a deal to provide First American Subordinate Lien Outsourcing with distressed portfolio management services.
FASLO, a business unit within the default information services division of First American, will use Response Analytics' optimization technology for portfolio valuations and optimal recovery recommendations.
By "adaptively" learning and therefore predicting how borrowers and portfolios will react to changing market and economic conditions, mortgage organizations can increase accuracy for valuations and cash flow forecasts as well as optimize workout recommendations, according to RAI.
Brent Lippman, CEO of RAI, told MSN that the company combines industry expertise with analytical mathematical capabilities to help lenders achieve optimal results.
He said the company's analytics help clients understand borrower behavior under different economic circumstances, looking at issues such as property value, geography and income levels.
He said what is often missing today when lenders or investors attempt to value a portfolio is a detailed analysis of what loans are likely to become delinquent and what should be done with those loans that do become delinquent.
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Source: HighBeam Research, First American Using RAI's Optimization Technology Tools.(Special...