Angelo, Gordon to use TransUnion product to assess mortgage risks
Alternative investment advisor Angelo, Gordon & Co. plans to use TransUnion's consumer risk indicator to increase insight into borrower behavior within the advisory firm's whole loan and securitized mortgage portfolios. Terms of the deal weren't disclosed. Angelo, Gordon & Co. said the new function will enable it to examine a borrower's credit profile on a more in-depth level in an attempt to further analyze default risk. "While the industry has long had information on the current performance of the specific mortgage in a security, we are now able to bring additional information on almost all other facets of a mortgage borrower’s credit profile including how that borrower is performing on their [second] mortgage, their auto loan, and their credit cards, all on an anonymous basis," according to Tim Martin, group vice president in TransUnion’s Capital Markets. "This information can enable users to predict defaults long before the loan-delinquency information that was available up to now. With this added transparency, portfolio managers and traders can better differentiate between securities and value bonds with greater accuracy.” Martin also expects the new product will allow for "significantly more accurate risk assessment" and provide advisers a "view inside every mortgage loan to actively manage and trade a RMBS portfolio." The product will use TransUnion's anonymized credit data and is based on loan-level securities data from CoreLogic's LoanPerformance and is availabe through 1010data. "This type of borrower information represents a next step in loan-level analysis and will provide a much deeper understanding of borrower credit than available before," Yong Joe, Head of MBS/ABS Research for Angelo Gordon, said. Write to Jason Philyaw.