MDA DataQuick, a division of Wilmington, Del.-based MDA Lending Solutions, has announced that Burbank, Calif.- based Lockheed Federal Credit Union (LFCU), with $2.9 billion in assets, has selected MDA DataQuick's Collateral Validation to help the credit union proactively identify and manage loan risk and set loan-loss reserves.
According to credit union officials, MDA DataQuick and LFCU determined five market area risk levels in order to assess one dimension of risk in their real estate portfolio to meet their regulator's requirement of a multi-dimensional portfolio risk analysis.Â Through the use of neighborhood-level data and analytics, LFCU is better able to identify and meet loan-loss reserve requirements, evaluate and manage potential risk in individual loans or groups of loans, and understand the overall value of the credit union's loan portfolio.
‘As the nation is plagued with defaults and foreclosures, it is vitally important that we leverage the most accurate data and advanced analytics to insulate our portfolios against risk,’ says Ana Fonseca, senior vice president and chief financial officer of LFCU. ‘LFCU and MDA DataQuick worked together to identify and analyze our portfolio in a worst-case scenario, as well as several alternate scenarios. We feel confident our loan-loss reserve is adequate, and we have a grasp of the equity in our portfolio.’
SOURCE: MDA DataQuick