Level1Analytics is dedicated to providing the highest level of valuation available as required by the accounting regulations.
Our L1aLoans 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 that do not match existing product being acquired by the major aggregators are priced using our proprietary Cash Flow Valuation Model.
Our valuation is rooted in the method used daily to price loans by loan officers. We determine eligibility of a loan for a given product by slotting it to various Investors’ product listings, and then pricing that loan by inspecting the prices available from published sources, namely Investor’s rate sheets. By slotting the loans to products that are currently being bought and sold on a daily basis, and pricing them based on these major aggregators’ rate sheets, the Level1Analytics system effectively transfers the complex forecasting requirements to those that do them best—the secondary markets. This loan slotting and pricing methodology eliminates the need to make hard to defend valuation assumptions such as expected prepay speeds, defaults, future interest rates, and market yield requirements.
- Delivers valuations down to the loan level, which guarantees that no potential risk or reward opportunity in the portfolio is overlooked
- Presents a comprehensive valuation report that includes an opinion letter along with a discussion of the methodologies utilized, as well as the assumptions and their sources
- Provides timely results regardless of portfolio size, valuing portfolios from one loan to millions of loans
- Auditable price and assumption discovery process assures you that all assumptions used are defensible and can be tracked over time
- Utilizes the minimum number of subjective elements, looking first at the database of prices actually being paid for loan products so that predicting market prepay speeds and default assumptions can be minimized