Mortgage Capital Markets: Andrew Davidson & Co To Work With Equifax

Mortgage Capital Markets: Andrew Davidson & Co To Work With Equifax

By CFO Tech Outlook | Friday, September 27, 2019

The new enhanced Version of AD&Co’s Credit Model will Leverage Trended Credit Data from Equifax in a collaboration program. 

FREMONT, CA: Leveraging enhanced analytic insights into the mortgage capital markets, Andrew Davidson & Co., Inc. (AD&Co) and Equifax Inc. have decide to collaborate with each other. The joint effort will employ AD&Co’s both advanced analytics and modeling capabilities along with the comprehensive data and information from Equifax. This joint venture is an offering designed to assist investors in Fannie Mae Connecticut Avenue Securities (CAS). It will help leverage the trended credit card data offers by Equifax utilizing the upgraded version of AD&Co's credit model.

From combining the Equifax trended credit card and Fannie Mae CAS data, an unprecedented opportunity to study the interaction among the characteristics of the borrower and loan dynamics at scale can be derived. It is believed that the trended data from Equifax helps to deliver more predictive insights and additionally adds another dimension to the modeling, which was unavailable earlier. 

The trended credit data from Equifax reveals useful patterns on how the consumers make payments and manage credit lines depending on the 24 months of FCRA-regulated trade line level data. The financial behavior can be revealed to extract insights from trending and analyzing the anonymized data for some time. The view of data from the above angle will supplement the conventional static credit snapshot with a dynamic view of risk levels in lending products, along with behaviors and characteristics. 

With the immense experience gained by partnering with leading financial institutions and investment managers from more than three decades, AD&Co has recognized that the trended credit data is the new paradigm for consumer credit analytics. Equifax believes that the new model by AD&Co will empower the Fannie Mae CAS bond investors to extract from the potential of the valuable information in their analytics. 

The companies now stand by to provide support to increase the quality of mortgage data and analytics and readily present it to a broader market. The enhanced understanding of the risks and compensating factors from Fannie Mae mortgages can uplift investor confidence in the CAS program believes the team at Fannie Mae. 

The new, improved AD&Co credit model that leverages trended credit data from Equifax will be available in 2020. 

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