Corporate Risk Advisors LLC has teamed with Credit Facilitator Solutions LLC^® to offer a variety of consulting services related to the evaluation, pricing and structuring of mortgage portfolios. We can help your institution with a vast array of credit analysis issues, including:

• Evaluate nontraditional mortgages, including stress tests;
• Develop strategies that can protect or enhance your competitive position under the new Basel II and IA capital standards;
• Benchmark your existing default, prepayment, and pricing models to industry standards;
• Design and conduct 3rd party stress tests;
• Evaluate alternative forms of credit enhancements and their impact on profitability;
• Evaluate the risk exposure and profitability of mortgage-backed securities, including senior-subordinated structures;
• Assess and value loan portfolios.

Our services have been designed to meet the needs of banks, mortgage bankers, mortgage insurers and investors.

The Credit Facilitator Model

Our product offerings employ a proprietary software tool, The Credit Facilitator Model, which was developed by Dr. Michael Goldberg, former VP of Financial Analysis at Fannie Mae. The Credit Facilitator Model is a complete software solution for evaluating and pricing mortgage credit risk.

The model can be used to project current and future risk-based capital requirements, profitability and losses on an existing book, rates of return, pro forma income statements, and key performance statistics (e.g., defaults, prepayments) under a variety of economic scenarios, including a stress environment. Clients can choose to use their own proprietary default, prepayment and loss severity models, or use ones developed by Credit Facilitator Solutions^®.

One of the unique features of the Credit Facilitator Model is that it enables users to price a mortgage pool based on their own capital and reserve requirements, as well as the capital requirements of competitors and/or potential investors. This 360° assessment allows users to determine the optimal deal structure, understand the value of the deal to potential investors, and assess the impact of changing capital standards on their competitive position going forward. The model also enables users to assess a wide array of alternative credit enhancements including loan-level MI, pool insurance, and structured transactions.

For more information about our Credit Risk Analysis Services, please contact us.

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