improve loan valuation results with a consistent approach to risk management

Loan ValuationVALUATION, ANALYSIS, AND REPORTING

UNRIVALED CAPABILITIES – UNMATCHED RESULTS

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Who is Claren• Founded: 2013 by team of veteran IT, Analytics, and Mortgage Industry professionals

• Vision: Provide the standard for valuing all mortgage assets through an enterprise-class, state-of-the-art valuation, analysis, and risk management platform that is accurate, comprehensive, and easy-to-use

• Operations: Atlanta, GA (with sales and analytics presence in New York and Philadelphia)

• Products & Services: Cloud-based Risk Management platform includes:

Loan Valuation – Provides an intrinsic valuation of residential whole loans

MSR Valuation – Provides an intrinsic valuation of purchase mortgage servicing rights (MSR)

Refinance Recapture – Provides an intrinsic valuation of soliciting an MSR portfolio for refinance

Servicing Optimization – Determines the optimal servicing action on NPLs based on NPV

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“By far, the most comprehensive valuation and analysis models and tools I’ve ever used.”- Claren Client, since 2014

Product Spotlight: Loan Valuation• Easy-to-use interface that handles virtually all loan products with unrivaled flexibility and customization. Manage

all aspects of the Loan valuation process and results - from tape loading to loan-level analysis. Integrates the

work of at least three separate enterprise software platforms into one. Perform fast, consistent, and accurate

valuations based on how you work, not how we think you should work.

• Identify risk exposure - Prepayment, Default, Loss, Outliers , and Opportunities (i.e., Loss Mitigation strategies,

Advancing requirements, and Key Risk Drivers).

• Comprehensive Performance and Cash Flow Models. Includes Loan or Cohort-level processing, property,

borrower, and market variables.

• Unrivaled features and functionality:

• Comprehensive Reporting and Data Extract capabilities. Use our reports or customize your own by downloading

the results in Excel or CSV format.

• Generates Intrinsic Valuation (i.e., NPV of life-of-loan cash-flows)


• Use your file import and translation templates or ours • Use your income and cost structures or ours

• Import your own custom curves or use ours • Perform Static, Sensitivity Analysis, or Option Adjusted Spread simulation processing

• Loan-level forecast of the probability of being in a given future status (Current, 30dpd, 60dpd, 90+dpd, FC, REO, and more)

• 594 Individual Sets of Coefficients across Multiple Collateral Types

• Based on 43M loan records and 2.1B payment records from 1997 forward

• Back-tested and fully validated models

• Utilizes Machine Learning to adjust to changing market factors

Performance Modeling


• Non-Agency Prime • Agency – Low risk

• Alt-A • Agency – Med risk

• Subprime • Agency – High risk / HARP

1. Import your data using your file layout or ours

2. Map your columns to ours

3. Translate your codes to ours

4. Set your Pool Preferences (Discount Rate, Servicer Rating, Advancing Strategy, Originator Rating, etc.)

5. Set your Assumptions or use ours (HPI trend, Interest Rate trend, Default Risk levels, Operational Costs and Incomes, etc.)

6. Select the processing you want to perform (i.e., Loan or Cohort level, Static or OAS, Sensitivity, etc.)

7. Process results – simple!

The Loan Valuation Process


• Comprehensive Data Reporting• Loan Valuation NPV

• Performance Forecasting (by Delinquency Status)

• CDR & CPR Curves

• Forecasted Cashflows (Year-end and Monthly)

• Principal Resolution

• Advances Forecasting

• Data Integrity Scoring and Identification of Key Drivers of Risk (loan- and pool-level)

• Stratifications – Delinquency, FICO, DTI, ELTV, CLTV, and many more!

• Complete Data Extract Capabilities (Summary and Detail)

Fast, Accurate, and Meaningful Results!


Results Output – Pool Summary


Your Pool Preferences

Loan Valuation Info (Amount and Percent)

MSR and RefiRecapture

Valuations and Multiples

Pool-specific Balances and

Ratios

Results Output – Delinquency Summary


Cashflows, Valuations, and

CDR and CPR Forecasts, by

Delinquency Status

Current Balances by Delinquency

Status

Results Output – Performance Analysis


10 Year Performance Forecast by

Delinquency Status

84 month Performance Trend

by Delinquency Status

Results Output – Performance Analysis


Forecast CDR Trend, by REO and

Short Sale

Forecast CPR Trend (84 Months)

Results Output – Total Period Cash Flow


Year-end total cashflows, Principal Payment, Interest

Payment, Pre-paid, Liqudationfrom REO and Short Sale

percentages

Monthly cashflowsas a percentage of

current balance (84 months)

Results Output – Principal Resolution


Principal Resolution (Final Loan Outcomes)

Analysis

Results Output – Advances Forecasting


Forecasted Year-End Advancing

Amounts by Type with % of

Delinquent UPB Comparison

Forecasted Advancing Amounts by Type, by Month

Results Output – Yield Curve


Yield Curve showing forecasted cashflows at various discounts rates

+/- the discount amount used

Graphical representation of Yield Curve information

Results Output – Stratifications


Comprehensive Stratification groupings by:• FICO• DTI• Payment Ratio• ELTV• CLTV• And Much More!

• Put the power of world-class analytics, an intuitive user experience, and a flexible reporting engine to work for YOUR requirements today!

• Utilize YOUR experience, risk and market assumptions, and operational incomes/costs to quickly “dial-in” results that are meaningful to YOUR operation

• Work how and where YOU want to – anytime, all the time

• Leverage state-of-the-art technology to perform Loan Valuations fast, accurately, and cost-effectively

• Review, analyze, and share results effortlessly through comprehensive reporting and data extract capabilities

In Conclusion


Interested in Learning More?


Please call us at 650-265-7627

OR

e-mail us at [email protected]

improve loan valuation results with a consistent approach to risk management

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