LPS knows that data clarity and portfolio transparency are important factors in mitigating risk. That’s why LPS leverages its industry-leading data and technology to provide proprietary scoring models, enabling you to score all the loans in your portfolio so you can determine the most important loans to prioritize for potential workout solutions.
By combining loan, borrower and property information with housing price and interest rate forecasts, the LPS mortgage scoring model, Mortgage Scores, calculates scores for three different scenarios – high side, low side and expected – and then measures prepayment, delinquency, default and loss at the loan-level. This provides originators, servicers and investors key pieces of predictive analytics that can be plugged into a wide variety of applications and used for standalone actionable intelligence. Using this behavior-based scoring product, investors, servicers and originators can then better determine which loans are most at risk for default.
Other scoring models from LPS Applied Analytics, such as Propensity to Default, is a percentage score that is calculated using industry-leading behavioral models combined with projected paths of interest rates and housing prices.
Armed with this information and conditioning on future economic scenarios, portfolio performance analysis is more accurate and more predictive than traditional history-based industry alternatives.