First American LoanPerformance, a residential mortgage data and analytics provider for the mortgage industry and Wall Street, said Tuesday that version 1.2 of its PreTell Prepayment Scoring System is now available. According to the company, the new version has significantly expanded the types of loans scored and has added a new set of Cross-Sell Scores for enhanced cross-sell and new customer acquisition. The PreTell Scoring System provides numeric scores on an index of zero to 1,000 that predict the likelihood of an active loan prepaying within a 6-month forecast window. LoanPerformance said PreTell Scores can differentiate between borrowers who are refinancing and moving, as each loan receives a unique refinance, mover and aggregate score. The scores are designed to complement, rather than compete with, traditional prepayment models used by the capital market to predict cash flow changes. PreTell 1.2 now scores 22 mortgage products including prime, subprime and Alt-A 15-year and 30-year fixed-rate loans, in addition to prime and nonprime hybrid adjustable-rate mortgages.
Newly-added Cross-Sell Scores are designed for financial institutions that wish to market mortgage products to their existing customers who hold credit cards, auto loans, demand deposits and brokerage accounts, LoanPerformance said. Financial institutions can use these scores to improve their marketing campaign yields with better targeted prospect lists. The Cross-Sell Scores are derived from public property record data, sophisticated property valuation models and household-level demographics. The only data fields required to generate the PreTell Cross-Sell Scores are customer name and address. Early adopters of the PreTell Scoring System said they have seen an immediate impact in both retention and secondary marketing functions. Charles Stone, vice president of customer initiatives at GMAC Mortgage, said that his company uses PreTell to maximize marketing dollars by mailing to true “at risk” customers on the verge of paying off, rather than to the entire portfolio. “PreTell gives us better visibility into our servicing portfolio,” he said. “In the first half of 2006, PreTell scoring saved us more than $100,000 in mailing costs on one campaign alone without sacrificing response rate.” “PreTell is a sophisticated analytical tool that is giving us better insight and new strategic options within our secondary marketing programs,” said Rick Rhinehart, vice president of secondary marketing at New Century Financial. “While we are not using it to cross sell, we are looking at new applications for PreTell. For example, we’re running tests to see if there’s a correlation between loan quality and performance within different PreTell bands.” For more information, visit http://www.loanperformance.com.