CRT investors and reinsurers gain new valuation insights

PEEKSKILL, New York, February 23, 2023 /PRNewswire/ — CRT Hub, a wholly owned subsidiary of Chasen Enterprises and a specialist provider of data, tools and analytics for the structured finance industry, is pleased to announce an alliance with Andrew Davidson & Co., Inc. (“AD&Co”), a provider of risk analysis and advisory services for home loans and mortgage-backed securities. Through this new agreement, CRT Hub will integrate AD&Co’s LoanDynamics model into its platform, giving Credit Risk Transfer (“CRT”) investors and reinsurers the ability to leverage AD&Co’s mortgage lending model and reduce prepayment, arrears, default and severity to forecast the loss of Agency CRT Securities, Reinsurance and Mortgage Insurance Related Notes.

“With a focus on transparency and interoperability, CRT Hub is well positioned to become the leader in CRT risk management analytics,” he said Andy Chasen, Founder and President of CRT Hub. “Our long-term strategy includes expansion into additional structured products as we seek to bring larger products and services to the market. Alliance with an industry leader like AD&Co is part of this customer-centric game plan to deliver superior insights.”

CRT Hub provides users with the ability to analyze and generate cash flows from a comprehensive library of securities for credit risk transfer and reinsurance transactions issued by Freddie Mac, Fannie Mae and various mortgage insurers. The deal models include key transaction components, including information about the underlying reference pool, liability structure, and waterfall components such as key dates, trigger testing, and call provisions.

“Our industry-leading LoanDynamics model (www.ad-co.com/loandynamics) is a perfect complement to the CRT hub,” he said Michelle Stepien, Vendor Relations Manager at AD&Co. “With an in-depth knowledge of mortgage insurers, particularly GSEs, and a commitment to continuously…