Financial Modeling Services
Level1Analytics offers valuation and financial modeling services for mortgages and mortgage related assets, including mark-to-market and economic valuations, default and prepay risk analysis, and loan-loss-provision estimates.
Our proprietary system provides slotting and pricing of mortgage asset portfolios based on quoted prices, for identical assets, in active markets as of the valuation date. Loans and servicing rights that do not match existing product being acquired by the major aggregators are priced using our proprietary Cash Flow Valuation Model.
- Accurate — valuations down to the loan level guarantee that no potential risk or reward opportunity in the portfolio is overlooked
- Transparent — our valuation binder discloses the methodologies utilized as well as all assumptions and their sources
- Auditable — our price and assumption discovery process assures you that all assumptions used are defensible, and can be tracked over time
- Minimum number of subjective elements used — because our valuation system looks first at our database of prices actually being paid for loan products, predicting market prepay speeds and default assumptions can be minimized
The Level1Analytics Difference
Level1Analytics is the nation’s only valuation firm that is not also a broker. This benefits you in two ways:
- There is no conflict of interest — appraisers are required to disclose if they may have any past or future financial interest in brokering the asset they are valuing. We need no such disclosure.
- Because we pose no competitive threat to brokers, we can obtain actual market intelligence from all of them. They will share with us what they cannot share with each other.
Additionally, because we have developed and own our valuation models, we can more easily modify them to the particular idiosyncrasies of a portfolio or to changing economic dynamics.