Evanston, IL (Vocus) October 24, 2009
AnswerMine Group (http://www.answerminegroup.com) today introduced analytics-primarily based options for targeted mortgage restructuring, and mortgage portfolio valuation and danger management.

AnswerMine’s Mortgage Analytics Service helps lenders and mortgage servicers target loans that are likely to default for restructuring or modification, primarily based on the predictive worth of granular credit data alternatively of generic credit scores. This service also optimizes the restructuring procedure, using AnswerMine’s models that adapt to the evolving economic situation and that improve as more modification information becomes available.

AnswerMine’s Valuation and Hedge Analytics Service requires into account the new crucial variables that drive portfolio threat in today’s lending environment, such as the effect of restructuring techniques.

AnswerMine can evaluate all or any part of a lender’s residential mortgage portfolio, in help of strategies to increase loan-modification programs, minimize delinquencies, provide options to foreclosure and boost the all round value of the portfolio.

“With asset values at historic lows, the ability and willingness of borrowers to pay is a essential factor in portfolio efficiency,” mentioned Stuart Cornew, AnswerMine co-founder and managing director. “Lenders need to have much more than just FICO scores to comprehend danger. By analyzing a borrower’s credit behavior, AnswerMine supplies the basis for a targeted portfolio management approach to maximize the net present value to lenders and investors.”

AnswerMine’s service recognizes that, for the duration of a period of declining true estate values, the creditworthiness of borrowers is increasingly the essential indicator of mortgage portfolio good quality. By analyzing credit data making use of a proprietary strategy AnswerMine aids lenders locate issue loans just before they become issues.

“If you can get to those loans and modify or restructure them just before they default, you vastly enhance the likelihood of avoiding foreclosure,” Cornew explained.

Cornew stated AnswerMine’s solution is positioned “at the convergence of data, analytics and technology,” and noted that the current economic crisis gives a historic 1st chance to apply these three variables in solving a dilemma with such wide-reaching effects.

He also pointed out that AnswerMine is the initial commercially and technologically feasible targeting approach of its kind, and responds to the government’s challenge to apply targeted restructuring to the mortgage crisis.

“AnswerMine takes targeting out of the realm of theory and into the realm of practice,” Cornew asserted.

Cornew explained that banks would uncover worth in AnswerMine’s targeting analytics, even if they choose not to provide early loan modifications. “Our method gives lenders advance information of non-performing loans. They can apply that expertise in a variety of scenarios and methods, any of which might improve their portfolios’ overall performance.”

AnswerMine combines banking and mortgage experience, proprietary data mining and mortgage analytics, and affiliated operations and plan-fulfillment resources to measure, handle and monitor the achievement of lenders’ approaches. The service can be produced available on a turn-important basis, such as outsourced contact center operations to proactively contact borrowers, execute a client’s particular modification method and decide the optimum modification or restructuring answer.

Valuation and Hedge Analytics recognize financial realities

AnswerMine constructed its Valuation and Hedge Analytics Service on the understanding that borrower credit and residence prices will continue to be the crucial threat elements affecting mortgage and servicing portfolio composition throughout the coming years. By recognizing the altering relative significance of these underlying aspects, AnswerMine’s innovative use of credit data to figure out mortgage performance and re-worth mortgage portfolios provides a competitive advantage in the new and evolving market place for mortgage primarily based assets.

The Valuation and Hedge Analytics remedy monitors and analyzes a portfolio of whole loans or mortgage servicing rights, advising on valuation and forecasting expected losses and cash flows. The service contains reviewing all associated risks and suggested loss mitigation techniques inherent to portfolio management. As a outcome AnswerMine can advise firms on the suitable levels of loan loss reserves and economic capital, as well as the pricing of mortgage credit threat. Lastly, throughout instances like these of market place disruption, AnswerMine’s Valuation and Hedge Analytics can give a crucial independent evaluation of bank valuation models and assumptions.

Analytics strategy uses whole information sets, not data samples

AnswerMine’s information mining incorporates Info Obtain Theory to support a targeted portfolio management method. The method utilizes an entire data set – in this case, details on all borrowers within a portfolio – to get rid of classic sampling biases that plague other approaches. It also enables the discovery of greater-order interactions in big datasets, based on the capability to examine a number of combinations and sorts of variables (e.g., categoric and full-range numeric). And it examines so-named “non-parametric distributions” to discover anomalous variable relationships.

By operating with entire data sets, rather than samples, AnswerMine finds relatively rare events and combinations of variables that typically go undetected making use of other methodologies. This delivers the level of transparency that AnswerMine clientele demand for successful execution and regulatory reporting.

About AnswerMine Group

AnswerMine Group builds forecasting and segmentation models for effective application across several business segments. Using propriety analytic computer software, AnswerMine has refined and perfected the theory and strategy of information analysis into an correct, fast and versatile practice.

AnswerMine Group employs a philosophy to “let the information speak.” Its technologies analyzes huge datasets for profiles that hyperlink outcomes of interest with combinations of traits that can be used in predictive and segmentation models.

In addition to methodological experience, AnswerMine’s professionals have substantial encounter in and knowledge of the industries the organization serves. Its staff pioneered the use of Information Acquire Theory and selection trees in several areas of company.

For more details, please pay a visit to http://www.AnswerMineGroup.com.

Make contact with:

Mark Smith
PReturn, Inc.
312-371-6443

Steve Nunley
AnswerMine Group, LLC
847-332-2500

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