A relentless quest to develop smarter and more accurate analytics-based solutions gives CoreLogic lender and investor clients a clear advantage in this risk-averse environment. The company tracks more than 3.5 billion records spanning more than 40 years, and includes 98% of loan-level, non-agency RMBS, 85% of mortgage loan servicing performance information and more than 99% of U.S. residential and commercial real estate property records.
But CoreLogic doesn’t just gather data—it uses it to transform processes.
CoreLogic helps clients identify risk and value across the board—at the portfolio, loan and property levels. Its data and analytics are used for valuation, trading, pricing and risk management.
“The depth of our data combined with our predictive analytics allows us to create innovative solutions that span the entire mortgage lifecycle—from origination to the secondary market,” said Michael Ceppetelli, senior vice president, Capital Markets.
Some of its major applications include:
Mortgage risk: RiskModel and RiskModel AGENCY, forecast future residential mortgage prepayments, defaults, and cash flows for private-label and agency risk sharing securities, respectively.
Portfolio analysis: A fast, low-cost, configurable, portfolio-level lien analysis solution for servicers to determine lien status, current equity position and the borrower’s updated credit picture to drive compliance decisions. CoreLogic also offers an array of products used by investors and servicers in portfolio analysis and MSR trades to verify title and assignments are correct.
Housing trends and valuation: As a premier provider of home price indices and forecasts, the CoreLogic HPI, CoreLogic Case-Shiller Indexes and CoreLogic HPI Forecasts are widely adopted by the market. In addition, Market Condition Indicators identifies individual geographic markets as “overvalued,” “at value” and “undervalued,” relative to the markets’ long-term fundamental value. Clients are also provided data so that they can set custom risk levels to meet specific cases and risk assumptions.
The company consistently adapts its solutions to market conditions and regulatory changes. Recently, it released stress-testing scenarios to help banks comply with Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act Stress-Testing (DFAST) requirements. The new CoreLogic HPI Forecasts Stress-Testing Scenarios extend the Federal Reserve Board of Governors’ CCAR national house price supervisory scenarios down to the ZIP code level to better align with bank geographic footprints.
“These expanded sets of CoreLogic HPI Forecasts Stress-Testing Scenarios are easily consumed by our RiskModel AGENCY predictive analytics platform to facilitate stress-testing and other loss forecasting applications,” said Olumide Soroye, managing director of Information Solutions for CoreLogic. “Employing models developed on loan performance data sourced from our servicing consortium, these unique models are tailored to the types of mortgages held on balance sheets by many lending institutions.”
The company’s ongoing technology transformation initiative and the recent launch of CoreLogic Innovation Labs are accelerators of its rapid response approach to meeting client needs. CoreLogic Innovation Labs will serve as a primary center for innovation and agile development for its technology platforms, applications, analytical models and solutions to generate unique residential property data-driven insights. It will also support the expansion of the firm’s mobile applications suite.
Another product CoreLogic recently launched to meet client needs is CondoSafe, which won HousingWire’s HW TECH100 award for unique solution. According to Arlene Hyde, senior vice president of Client Experience, “CondoSafe was developed to help investors and lenders—frustrated by the inefficiencies, redundancies and risks in the condo project review process—determine whether individual condominium projects meet investor eligibility guidelines in an intuitive, user-friendly client portal, with no system integrations required.”
When a lender submits a condo unit-specific property to CoreLogic, CondoSafe links the property address to the correct condo owners association (COA) and contacts the association on the lender’s behalf. To date, CondoSafe has identified 60% of all COAs in the U.S. and attached 76% of all condo parcels to those COAs.
CondoSafe also provides the first uniform, copyrighted COA questionnaire that has been shared with the GSEs, HUD, VA and Community Associations Institute, helping lenders obtain more consistent information and make faster, more confident underwriting decisions.
In addition, CondoSafe’s alerts enable lenders to interact with confidence in the secondary market by notifying them of potential risk earlier in the process. Eligibility rule alerts help identify potential investor delivery issues, such as percentage of owner occupancy, commercial/residential mix or loan performance.
“Our data and analytics are what drive our strategy and solutions, which is why we are able to develop technology applications and platforms that streamline workflow for capital market investors, mortgage lenders and servicers, and real estate sales professionals,” said Ceppetelli.