A Primer on HECM Loans

In September, RiskSpan announced the addition of Ginnie Mae’s loan-level Home Equity Conversion Mortgage (“HECM”) dataset to the Edge platform. The dataset contains over 330,000 HECM loans with origination dates from 2000 to 2018 and reporting periods from August 2013 to October 2018.   This post is a primer on HECM loans, the HMBS securities they collateralize, and the structure of the new dataset.  What is a HECM?  HECMs are FHA-insured reverse mortgages that provide people 62 and older with cash payments or a line of credit… ShareTweetShare

Big Companies; Big Data Issues

Data issues plague organizations of all sorts and sizes. But generally, the bigger the dataset, and the more transformations the data goes through, the greater the likelihood of problems. Organizations take in data from many different sources, including social media, third-party vendors and other structured and unstructured origins, resulting in massive and complex data storage… ShareTweetShare

MDM to the Rescue for Financial Institutions

Data becomes an asset only when it is efficiently harnessed and managed. Because firms tend to evolve into silos, their data often gets organized that way as well, resulting in multiple references and unnecessary duplication of data that dilute its value. Master Data Management (MDM) architecture helps to avoid these and other pitfalls by applying… ShareTweetShare

Join Us: Webinar – Using Machine Learning in Whole Loan Data Prep

Register for our webinar on June 26th at 11:30 am, where we cover Using Machine Learning in Whole Loan Data Prep. One of the biggest obstacles to managing whole loan data is curating and normalizing multiple, disparate data sets. A field such as ‘interest rate’ may be formatted seven different ways from seven different sources, and… ShareTweetShare

Augmenting Internal Loan Data to Comply with CECL and Boost Profit

The importance of sound internal data gathering practices cannot be understated. However, in light of the new CECL standard, many lending institutions have found themselves unable to meet the data requirements. This may have served as a wake-up call for organizations at all levels to look at their internal data warehousing systems and identify and… ShareTweetShare

Choosing a CECL Methodology

CECL presents institutions with a vast array of choices when it comes to CECL loss estimation methodologies. It can seem a daunting challenge to winnow down the list of possible methods. Institutions must consider considering competing concerns – including soundness and auditability, cost and feasibility, and the value of model reusability. Institutions must convince not… ShareTweetShare

A Brief Introduction to Agile Philosophy

Reducing time to delivery by developing in smaller incremental chunks and incorporating an ability to pivot is the cornerstone of Agile software development methodology. “Agile” software development is a rarity among business buzz words in that it is actually a fitting description of what it seeks to accomplish. Optimally implemented, it is capable of delivering… ShareTweetShare

Growing Benefits of Big Data

2018 is poised to further revolutionize the way companies use Big Data to improve their financial bottom lines. The term Big Data generally refers to a dataset that is too large to be efficiently administered and evaluated by a traditional relational database. Its meaning has recently expanded, however, to include advanced technologies that can store,… ShareTweetShare