Software provides mortgage prepayment scoring system.

Press Release Summary:



In addition to prime and nonprime hybrid adjustable-rate mortgages, PreTell v1.2 scores 22 mortgage products including prime, subprime, and Alt-A 15- and 30-year fixed-rate loans. Program provides numeric scores on index of 0-1,000 that predict likelihood of active loan prepaying within 6-month forecast window. Cross-Sell Scores target financial institutions that wish to market mortgage products to existing customers who hold credit cards, auto loans, demand deposits, and brokerage accounts.



Original Press Release:



First American LoanPerformance Launches PreTell(TM) 1.2



SAN FRANCISCO, Feb. 20 /-- First American LoanPerformance, a leader in residential mortgage data and analytics for the mortgage industry and Wall Street, announced today that version 1.2 of its PreTell Prepayment Scoring System is now available. This newest 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.

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. The 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. 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 have seen 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. 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," said Stone.

Rick Rhinehart, vice president of secondary marketing at New Century, said that his company is now regularly scoring loans and loan pools as part of its enhanced analytical process. "PreTell is a sophisticated analytical tool that is giving us better insight and new strategic options within our secondary marketing programs. 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."

The PreTell Scoring System, developed with leading mortgage originators, servicers, traders, investors and guarantors, 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. PreTell Scores can differentiate between borrowers who are refinancing and moving, as each loan receives a unique refinance, mover and aggregate score. PreTell Scores complement, rather than compete with, traditional prepayment models used by the capital market to predict cash flow changes.

First American LoanPerformance is a subsidiary of First American Real Estate Solutions and a member of The First American Corporation (NYSE:FAF) family of companies. First American LoanPerformance's databases track the delinquency and prepayment performance of 50 million active individual mortgage payments per month and provide loan-level information on more than $1.6 trillion in nonagency mortgage and asset-backed securities. The company's data and suite of predictive prepayment and risk modeling solutions enable mortgage originators, servicers, securities issuers and investors to make informed business decisions about credit risk, loss mitigation, customer retention, securitization and investment. For additional information, visit www.loanperformance.com and www.firstamres.com.

The First American Corporation (NYSE:FAF), a FORTUNE 500(R) company that traces its history to 1889, is America's largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people's lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage Information, Property Information, and Risk Mitigation and Business Solutions. With revenues of $8.1 billion in 2005, First American has approximately 2,100 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com.

Web site: www.loanperformance.com/
Web site: www.firstamres.com/
Web site: www.firstam.com/

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