Milliman Mortgage Analytics

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Using public mortgage data and proprietary mortgage evaluation tools, Milliman Mortgage Analytics™ helps find additional business opportunities to originate or purchase mortgage loans. Our tools and products identify risks and rank them, providing a transparent methodology to share with interested stakeholders.

Milliman has access to origination data from Freddie Mac, Fannie Mae, and Ginnie Mae to analyze historical and current originations. With this data, we analyze and compare originations from a lender’s current footprint to the market to determine if any originations are intentionally or unintentionally excluded based on lender risk tolerances. Using our performance models, we can evaluate if what is left out of the pipeline can be originated profitably by our client lenders. We also perform similar services for lender risk management teams that purchase mortgage loans to provide additional insight about the types of loans originated by each correspondent lender.

In addition to actual average credit characteristics, Milliman enhances the analysis by estimated actual default rates at the loan level, which can be aggregated to compare portfolios in aggregate as opposed to single dimensions of risk. Milliman’s default scoring algorithm segments risk into three components (borrower, underwriting, and economic) that can be analyzed and compared to evaluate the type of loans originated by a given correspondent lender relative to the industry.

Understanding the sources of new business and the quality of that new business is critical in managing mortgage credit risk. Milliman’s history of independent thinking and objectivity provides stakeholders, including risk managers, auditors, and product developers, with confidence that new business acquisitions are based on a transparent methodology backed by solid analytics.

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