Receptive Asian Audience for Loan Analysis Product

Submitted by Ronald Tennant with Metrocities Mortgage:

American Banker (05/19/08) P. 9; Berry, Kate
To generate originator interest in its LoanSafe software designed to assess mortgage default and fraud risk, First American CoreLogic began marketing the application to ratings firms, bond insurers and Asian banks. The company has focused on China, given that the U.S. Treasury pegs total exposure to U.S. subprime mortgages at $200 billion for China's top five banks. The software is being tested or will be implemented soon by Bank of China, Bank of Taiwan, China Construction Bank and the Industrial and Commercial Bank of China. However, foreign banks have never used loan-level data from investors, so Walter Allen--CoreLogic senior vice president of capital markets--says they must engage in "forensic work" by examining their portfolios and sending problem mortgages back to lenders.