New York, Sept. 23, 2009 — Experian®, a global information services provider, today announced the availability of CreditHorizonsSM for Whole Loan Portfolios, a new method for clients to analyze and value their whole loan portfolios. CreditHorizons uses consumer credit data, credit risk scores and predictive attributes to provide a more complete view of the credit health of the underlying borrowers, thereby enhancing the client’s ability to forecast future loan performance.
“Experian Capital Markets’ CreditHorizons for Whole Loan Portfolios adds a new level of transparency by linking individual borrower behavior to expected loan performance,” said Ethan Klemperer, general manager and senior vice president, Experian Capital Markets. “This additional insight will improve the value analysis of performing and non-performing loans, and facilitate dynamic credit risk monitoring within whole loan pools.”
Experian’s team of consumer credit data experts have rigorously tested and identified the key credit attributes that can positively impact the client’s bottom line. Credit attributes offer a beneficial new dimension to the probability of default models currently used by the market. The direct result is the ability for clients to make better decisions about asset value, thus creating a significant competitive advantage.
For example, a hedge fund recently used Experian’s CreditHorizons in a portfolio analysis of a performing option Adjustable Rate Mortgage pool. Experian’s CreditHorizons identified additional fraud losses, recent bankruptcy filings and two times the number of investor-owned properties than reported by the pool’s seller. This information significantly impacted the pool’s value, and resulted in the client deciding not to bid.
“CreditHorizons for Whole Loan Portfolios delivers updated consumer credit scores and key credit attributes to better forecast borrower default. Attributes such as credit card utilization rates are predictive indicators of early mortgage delinquency,” said Klemperer. “Borrowers who exhibit high credit card utilization are 27 times more likely to default on their mortgages within the subsequent three months.”
CreditHorizons for Whole Loan Portfolios is delivered through Experian Capital Markets’ dedicated team of experienced industry professionals who understand the market and actively partner with Experian clients to design customized solutions for their analytical needs.
Experian is a global leader in providing information, analytical and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions.
Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organizations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage.
For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organizations from financial services, retail and catalog, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Experian has corporate headquarters in Dublin, Ireland, and has operational headquarters in Costa Mesa, Calif., and Nottingham, UK. The Group employs approximately 15,500 people in 38 countries worldwide, supporting clients in more than 65 countries around the world. Revenue for the year ended March 31, 2008, was $4 billion.
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