LDR for Investors

One of the critical issues that led to the Housing Crisis was in the area of Investor purchases of MBS.  Investors wanted to purchase mortgage loans for their Rate of Return and Security, but there was no meaningful way that an Investor could determine the quality of the loans in the pool, whether individually or in mass.

The LDR Score offers a method to determine such quality.  Not only does it provide a quantitative measure of the Default Risk, each Score offers the ability to have a report generated of the Loan Level Characteristics needed to properly evaluate whether a loan met the criteria of the Investor.

LDR can also offer a detailed report of all the loans in a particular pool, so as to be able to determine appropriate levels of risk for the entire pool.  Rating agencies would be able to take these reports, and then properly rate the pool for Investment Grade.

Therefore, the LDR Score can meet the new demands being made for greater transparency of any loan and any MBS pool.

Investor Repurchase Exams

LFI Analytics offers a specialized Repurchase Exam for loans that were securitized into Mortgage Backed Securities (MBS). The Investor who has purchased MBS products can use this exam to determine the quality of the loan, and whether there exists actionable causes to demand that the seller of the product repurchase the loan from the Investment Pool.

Relevant factors reviewed include, but are not limited to:

• Income Fraud
• Occupancy Fraud
• Employment Fraud
• Appraisal Issues
• PSA Compliance (Pooling and Servicing Agreement)
• TILA/RESPA Compliance