The Emperor's New Clothes

Level1Analytics Receives Prestigious Mortgage Technology Award
March 18, 2014, 5:26 pm
Filed under: Uncategorized

Ft. Lauderdale, FL – Level1Analytics ™ delivers “great advances to the mortgage industry.” So says Mortgage Banking Magazine in awarding Level1Analytics a 2014 Tech All Star Award  for its L1-MSR product, the first cloud-based Mortgage Servicing Rights Valuation software. L1-MSR provides an economic and transparent way to value and stress-test mortgage loan and mortgage servicing portfolios without the need for specialized staff, costly hardware, and difficult-to-learn-and maintain software. The company’s do-it-yourself valuation tool allows owners, managers and regulators of mortgage servicing portfolios to better understand these complex assets.

“Working with our technology partner, Intraprise Solutions, we created an easy-to-use tool that can be used by banks, mortgage banks, credit unions and others to provide them with accurate mortgage valuation data,” said Dr. Thomas J. Healy, Ph.D., president of Level1Analytics. “The recent mortgage crisis brought to light how difficult it is to value mortgage assets. We help financial institutions better understand the assets they are evaluating.”

“There is a tremendous amount of data out there, but small to mid-sized banks traditionally have a harder time harvesting that information,” said Intraprise Solutions’ CEO, Ralph Arcaro. “Working closely with Level1Analytics, we were able to leverage cloud-based computing technology and provide users with access to sophisticated analytics, previously only available to much larger institutions.”
Completely scalable, LI-MSR is used by institutions with servicing portfolios ranging from 120 loans to over 1 million loans. The software is updated monthly to reflect the latest prepay speeds and assumptions. Users can rely on these market-tested variables or use their own. By simply uploading loan level portfolio characteristics into Level1Analytics’ secure platform, what used to take days or a team of analysts to accomplish is completed in a matter of minutes.
L1-MSR is licensed to individual institutions on a monthly basis and provides the power to make informed MSR management and investment decisions using the most complete stratification, valuation and accounting software available.
About Level1Analytics™
Level1Analytics, headquartered in Fort Lauderdale, Florida is a joint venture between the Sextant Group and Intraprise Solutions. Level1Analytics provides financial modeling software to the mortgage lending industry. The company develops cloud-based software technology that allows financial institutions to value their mortgage portfolios and mortgage based assets in an easy, accurate, defensible, economical and transparent way. For more information go to

About Intraprise Solutions
Intraprise Solutions rapidly designs and implements transformative, specifically tailored information technology applications for leading companies in the financial services, insurance and technology markets. Helping clients of all sizes reach their peak performance with sophisticated analytics, leveraging cloud and grid platforms, and “big data” processing principles, Intraprise Solutions delivers on the promise of real, powerful data. Located in Yardley, PA, Intraprise Solutions can be found at

Mortgage Delinquencies
December 31, 2013, 10:46 am
Filed under: Uncategorized

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5/15/2013 Prepay Speeds
May 15, 2013, 12:45 pm
Filed under: Uncategorized

Prepay speeds continue their downward migration after having, what seems to be, a temporary blip up as of 4/30. This seems consistent with a slight increase in mortgage rates since April month-end.

2013_0315 SIFMA

12/31/2012 MSR Values
March 25, 2013, 5:40 pm
Filed under: Uncategorized


Servicing values appear to have turned the corner. After bottoming out in the third quarter of 2012 with an average price of 61bps, year-end 10K results show an increase, on average, of six basis points to 67bps. This is consistent with what we are seeing with our own client valuations. Prepay speeds have begun to drop as rates strengthen and the population of loans that can be refinanced dwindles.

National Mortgage News article on Model Validation

We recently wrote an article on Model Validation for National Mortgage News. You can find it here:

Article from MBA NewsLink on Refi’s
October 3, 2012, 9:11 am
Filed under: Uncategorized

Refi Applications Hit 3-Year High as Rates Fall to Record Lows
Sorohan, Mike
Mortgage rates hit record lows for the third consecutive week, triggering the highest level of refinance applications since 2009, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending September 28.

The overall Market Composite Index increased by 16.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 17 percent compared to the previous week. 

The Refinance Index increased by 20 percent from the previous week, reaching its highest level since April 2009. The refinance share of mortgage activity increased to 83 percent of total applications from 81 percent the previous week. The Home Affordable Refinance Program share of refinance applications decreased to 23 percent last week from 26 percent the prior week.

The seasonally adjusted Purchase Index increased by 4 percent from one week earlier. The unadjusted Purchase Index also increased by 4 percent compared to the previous week and was 11 percent higher than the same week one year ago.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.53 percent from 3.63 percent, the lowest rate in the history of the survey, with points decreasing to 0.35 from 0.41 (including the origination fee) for 80 percent loan-to-value ratio loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.82 percent from 3.87 percent, also a survey record low, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.37 percent from 3.44 percent, a record low, with points decreasing to 0.36 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.90 percent from 2.98 percent, with points decreasing to 0.27 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages decreased to 2.59 percent from 2.61 percent, with points decreasing to 0.34 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity remained at 4 percent of total applications.

The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

8/15/2012 SIFMA Prepay Speeds

Speeds for the 15th have been posted on our site. They appear to have diminished substantially from their 7/31 highs,