Prepayment is the single most important consideration in valuing mortgage cash flows.
LPS Applied Analytics (formerly AFT) has produced a state-of-the-art behavioral mortgage prepayment model that moves beyond traditional prepayment models to provide a flexible trading-quality system.
The model offers a powerful open architecture system that integrates directly with your proprietary trading, portfolio management or valuation system or can be used on a stand-alone basis.
This gives clients the flexibility to manage their portfolio and make more informed valuation or trading decisions.
LPS Applied Analytics' prepayment model is stable. The model is based on borrowers' reactions to changes in the environment that cause prepayments (such as housing turnover or refinance). Because these reactions change very slowly, LPS Applied Analytics' model is also slow to change.
For more information contact LPS Applied Analytics at 1.415.989.9800.