First American Releases Risk Model Upgrade
First American Corporation’s (FAF) First American CoreLogic unit released the latest version of its LoanPerformance Risk Model software. The software forecasts future mortgage prepayments, defaults, losses and projected cash flows at the loan and portfolio level. New features include a “prime transition model,” that adjusts analytics equations for recent history of home price volatility and new conforming loan limits. Other added features include a new tool to import data and expanded reporting for loan-level data on prime, Alt-A, and non-prime loans. Another feature added to the software is a tool that executes multiple simulations tasks on a batch of loans in a portfolio. As the tasks are completed, a log is created detailing the progress. “The release of RiskModel 4.2 represents both significant enhancements and improved performance for our clients at a most critical time for our industry,” said George Livermore, First American CoreLogic CEO. “The updated prime model will more accurately forecast performance given the expanded dataset used to build the model and better capture both the recent volatility of, and the structural changes in, the market,” he added. Write to Austin Kilgore.