TransUnion’s Consumer Risk Indicator solution has been selected by BlackRock Solutions to provide deeper insight into mortgage portfolios for its clients. The solution, drawn from TransUnion’s anonymized credit data, is based on industry-leading, loan-level securities data from CoreLogic LoanPerformance.
BlackRock Solutions (BRS) offers risk management, advisory and enterprise investment system services to a broad base of institutional investors — which includes in depth analysis, tools and services for analysing investment grade to distressed assets, including whole loans and residential mortgage-backed securities (RMBS). It is part of BlackRock Inc, one of the world’s leading providers of investment management solutions.
"For the Capital Markets industry, the issue is how to discern between two mortgage-backed securities that may look similar (e.g. loan-to-value, geographic concentration and credit risk score averages), but can perform much differently over time," said Tim Martin, group vice president in TransUnion’s capital markets business unit. "Our loan-level data starts with the underlying borrowers behind the mortgages and provides a complete, anonymous picture of their full credit profile and performance; updated twice per month.
"TransUnion customers also receive updated bureau scores on those borrowers and information on their other lines of credit such as home equity lines, credit cards and auto loans. This more complete credit profile adds to the ability to predict defaults long before delinquencies start to show up, allowing companies, like BlackRock, to more accurately value two similar-looking securities."
With this new product offering, TransUnion provides anonymous, up-to-date and historical credit information for the borrower of each loan that is backed by a particular security. This promotes greater transparency and allows investors to make more informed decisions. The product has been demonstrated to allow significantly more accurate risk assessment than traditional methods that neglect to look at updated credit information.
"The data provided by TransUnion’s Consumer Risk Indicators allows BlackRock Solutions’ clients to make even more enhanced investment decisions on whole loans and residential mortgage-backed securities," said Robert Goldstein, Head of BlackRock Solutions. "The ability to see detailed borrowers profiles behind seemingly comparable securities allows our clients to make the most informed decisions possible."
Now available through 1010data’s service, the TransUnion Consumer Risk Indicators for RMBS data can also be provided via direct delivery from TransUnion.