Thursday, June 8, 2023
The Prepay by Level1Analytics model is empirically supportable and eliminates judgment. Driven in the short-term by changes in market rates, and in the longer run by evolving changes in mortgagor behavior. It is a far better reflection of actual mortgagor behavior; with better, more accurate data, your team is empowered to make the most effective decisions, saving time and money.
Our team uses two curves to project loan level prepay speeds by month. These curves are updated monthly based on actual mortgagor behavior. While rates may go up or down pretty significantly from period to period, mortgagor behavior tends to change relatively slowly over time. Prepayment speeds for the servicing portfolio are based on the L1A proprietary prepay model, factoring in all relevant data, so that you have more accurate and precise data with which to make informed decisions.
Our team is hands-on and knowledgeable, reach out to us for any consultation needs or questions.
info@level1analytics.com
+1 954-483-3424