Addition of Internationally Recognized Model Enhances Scenario Testing, Precision, and Confidence for MSR Managers
SAN DIEGO, Calif., Oct 10, 2024 – Mortgage Capital Trading, Inc. (MCT®), the de facto leader in innovative mortgage capital markets technology, today announced the integration of the LoanDynamics Model (LDM) from Andrew Davidson & Co. (AD&Co) into their mortgage servicing rights (MSR) valuation software. LDM is a well-respected prepayment model for residential mortgages that will complement MCT’s proprietary prepayment model in MSRlive! This integration allows MSR portfolio managers to leverage and compare both models, increasing confidence in the precision of their valuations and scenario testing.
“MCT’s MSRlive! platform is one of the most extensively adopted and customizable MSR valuation models in the industry,” said Bill Shirreffs, Senior Director, Head of MSR Services and Sales Operations at MCT. “We’re proud to work with AD&Co to add their internationally recognized LDM prepayment model alongside the customization and flexibility clients appreciate about our proprietary model.”
Because the MSR may be sold or retained independently of residential mortgage loans, MSR valuation and portfolio management is a critical function for U.S. mortgage lenders. Central to the value of any MSR is a forecast of its prepayment speed, which is dependent on a wide array of assumptions and heavily influenced by macroeconomic developments. MCT and AD&Co are both highly regarded providers of this prepayment modeling, and through their new alliance, they combine the best of both models for the benefit of capital markets professionals.
“AD&Co’s flagship LoanDynamics Model is a perfect complement to MCT’s MSRlive!,” said Michelle Stepien Breier, Business Development Manager at AD&Co. “AD&Co’s industry leading prepayment and credit models, coupled with MCT’s MSRlive!, provide a best-of-breed joint solution to MSR portfolio managers.”
The integration allows MSRlive! users who have an existing license or plan to license AD&Co’s LDM the opportunity to apply greater fine-tuning parameters to prepayment forecasting in accordance with the needs of the individual user and their portfolio. MSR portfolio managers interested in a consultation on their valuation and retention strategy are encouraged to schedule a meeting with MCT and AD&Co for the upcoming MBA Annual Convention.
About MCT
For over two decades, MCT has been a leading source of innovation for the mortgage secondary market. Melding deep subject matter expertise with a passion for emerging technologies and clients, MCT is the de facto leader in innovative mortgage capital markets technology. From architecting modern best execution loan sales to launching the most successful and advanced marketplace for mortgage-related assets, lenders, investors, and network partners all benefit from MCT’s stewardship. MCT’s technology and know-how continues to revolutionize how mortgage assets are priced, locked, protected, valued, and exchanged – offering clients the tools to perform under any market condition.
For more information, visit https://mct-trading.com/ or call (619) 543-5111.
About Andrew Davidson & Co., Inc.
Andrew Davidson & Co., Inc. develops and licenses prepayment and credit models, as well as risk measurement tools used as benchmark analytics by top mortgage and commercial banks, insurance companies, mortgage insurers, reinsurers, credit unions, broker-dealers, and investment management firms. Since its inception, the firm has provided clients with high-quality models, applications, consulting services, research, and thought leadership, all aimed at yielding advanced, quantitative solutions for an array of financial and investment management needs.
For more products and services information, visit www.ad-co.com and for direct inquiries contact support@ad-co.com. For media inquiries, contact Ashlea Bonds at ashlea@ad-co.com.
Media Contact:
Ian Miller
Chief Marketing Officer
Mortgage Capital Trading
619-618-7855
