MIAC Helps Mortgage Market Navigate Through Subprime's Treacherous Waters
NEW
YORK, July 23, 2007—As investors rush to move subprime mortgage loan
pools and related assets out of their portfolios, there is additional
demand for high-level analytical tools in order to arrive at accurate
pricing, according to Robert Fear, Senior Vice President of the Asset
Sales Group for Mortgage Industry Advisory Corporation (MIAC), New
York. MIAC, a leading provider of analytical software and independent
third-party valuations for practically any mortgage-related asset, has
played a significant role over the past 12 months in advising the
buy-side on large acquisitions of both prime and subprime mortgage
companies and assets.
“The
market is very active right now and both buyers and sellers are having
a more difficult time correctly pricing these assets, especially on the
subprime side,” Fear said. “While many sellers are rushing to get these
assets out of their portfolios, buyers are taking advantage of what
they think is an opportunity to make money when the market eventually
turns. Because many of our clients are regulated, having a value that
can be substantiated is a vital concern.”
In
2006, MIAC provided Barclays Bank PLC with a valuation for a subprime
MSR portfolio in support of its acquisition of HomEq Servicing
Corporation. Also in 2006 and 2007, MIAC provided valuation advisory
services to the buy-side to support diligence on several other
high-profile acquisitions of subprime originators and servicers. The
company has provided periodic valuations of whole loans, MSRs, Residual
Interests, and mortgage derivatives to over 200 clients.
The
problem some companies are facing, according to Fear, is that other
analytical tools being employed in the market today are either poorly
suited for calculating these valuations or not proven to be robust
models.
“Some of the models being
deployed right now are either outdated or are so new that they are
basically untested in a real business environment, so we’re getting a
lot of calls,” Fear said.
Fear has
been working as an advisor in subprime mortgage asset valuations for
over a decade. Part of his job involves incorporating model enhancement
requests from clients into MIAC Analytics, the company’s proprietary,
fully-integrated system used for pricing and risk management of all
types of mortgage related assets, including whole loans, servicing
rights, residual assets, and derivative instruments.
MIAC
recently released Version 4.1 Service Pack 2 of MIAC Analytics, adding
several new and exciting features including improved tools for advanced
sensitivity analysis and the calculation of key rate durations.
Regarding
M&A Advisory work, “MIAC’s market intelligence and advanced
analytical capabilities provided these buyers with a tremendous
understanding of the value of the servicing rights and the related
risks,” Fear said. “MIAC Analytics continues to fully support subprime
loans and servicing rights, and all of MIAC's subprime clients can be
confident that the modeled collateral behavior and cash flows are
accurate and completely audited.”
About MIAC Analytics
Founded in 1989, MIAC has been at the forefront of providing the most
sophisticated portfolio and risk management solutions to the mortgage
industry for all types of mortgage assets. Its clients include Nine of
the top Ten Mortgage Servicers and over 200 other clients, including
banks, thrifts, credit unions, FHLBs and Wall Street dealers. The
company's proprietary software, MIAC Analytics, is used in pricing,
hedging and accounting for over $4 trillion dollars in mortgage assets
each month.
In October 2006, MIAC was named the leading provider of Secondary and
Residual Pricing in the Securitized and Structured Finance markets by The Bond Market Association and The American Securitization Forum.
MIAC is a registered SEC Investment Advisor. Find out more about the company and its offerings at: www.MIACAnalytics.com.
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Bob Husted
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Paul Van Valkenburg |
www.MIACAnalytics.com
80 Maiden Lane
14th Floor, Suite 1401
New York, NY 10038
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