MortgageFlex Systems' LoanQuest servicing platform will integrate Value Creation Institute's (VCI) ValueScout product, which statistically models consumer behaviors. Incorporating the VCI tool will allow LoanQuest users to determine loans that are at risk of defaulting, the companies say.
ValueScout was created with scientific risk analysis tools from medical devices and aerospace fields. A recent test was conducted to demonstrate the effectiveness of the product's modeling technique to predict the outcome of residential mortgage loans.
Buckley Management Advisors, an affiliate of VCI, supplied loan servicing data where the outcome is known. The results show that ValueScout predicted loan repayment outcome with 96% to 98% accuracy, VCI says.
"This is an important advancement for mortgage servicing operations as they grow their portfolios," notes Lester Dominick, president of MortgageFlex. "This is especially true of problem pools. We will be able to help servicers better understand their analyses and determine what loans will likely have an incidence of failure."