CoreLogic Announces Allowance for Loan and Lease Losses (ALLL) and Mortgage Servicing Rights (MSR) Solutions for Banks
Email Dan Smith
October 17, 2012, Irvine, Calif. –
—Advisory Services Offerings Address New Rules and Anticipate Basel III Changes—
CoreLogic® (NYSE: CLGX), a leading provider of information, analytics and business services, announced today an Allowance for Loan and Lease Losses (ALLL) solution and a mortgage servicing rights (MSR) evaluation solution. Both solutions will help banks, credit unions and other regulated institutions comply with recent regulations that have been put in place in preparation for the implementation of Basel III.
Each offering grew out of successful, custom engagements delivered by CoreLogic Advisory Services whose primary areas of concentration are risk management, operational default servicing applications, valuation of securities, whole loans and MSRs.
“Banks and capital market participants are increasingly looking for help in developing and integrating new systems that will aid in assuring ongoing compliance with new and anticipated rules,” said Brett Benson, vice president of CoreLogic and leader of Advisory Services. “Our two new solutions will help banks meet higher, on-going requirements to continually evaluate the performance and value of second liens and MSRs, respectively. Our proven track record of providing data, analytics and evaluation tools for whole loans, portfolios and securities gives us a unique perspective and market permission to meet these new industry challenges.”
Under the proposed Basel III guidelines, banks will only be able to apply a portion of the value associated with MSRs towards the common equity component used to meet capital requirements. As a result of this change, many large banks are now reassessing their servicing strategies and their investments in MSRs. The new solution is designed to help both holders and buyers of MSRs better understand the risk and value of their MSR portfolios.
The upcoming Basel III guidelines inspired the new ALLL regulations issued by federal regulators earlier this year. These regulations require banks and other regulated institutions to take a more comprehensive view of junior liens such as closed-end seconds and HELOCs that back distressed first liens. The new regulations require banks to calculate expected credit losses on loans secured by junior liens factoring in LTV calculations, correct lien position (because sometimes HELOCs are not the second lien, but could be third or worse), occupancy status and individual credit scores.
“Regulations such as Basel III are forcing banks, mortgage companies and investors to reassess how to monitor, price and report risk, and how they gauge asset and portfolio performance over time. Our clients are looking for knowledgeable consultants to help them build ongoing processes to minimize risk and optimize market opportunities,” said Ben Graboske, senior vice president, Real Estate & Financial Services. “What CoreLogic Advisory Services brings to the table is an application of data and analytics, combined with the real-world insight of our seasoned consultants.”
For more information about CoreLogic Advisory Services contact Scott Sambucci at email@example.com or (916) 431-2117.
CoreLogic (NYSE: CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The Company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built one of the largest and most comprehensive U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. The Company, headquartered in Irvine, Calif., has approximately 5,000 employees globally. For more information, visit www.corelogic.com.
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