L1aPipeline gives you the ability to determine the fair market value for your loan pipeline, in compliance with the Statement of Financial Accounting Standards (SFAS) No. 157.
The fair market value is an estimated price that a willing buyer would pay to a willing seller, neither under compulsion to act and both having a reasonable knowledge of the market. We employ a robust slotting and pricing loans methodology that simplifies the process for customers, eliminating the need to make hard to defend valuation assumptions such as expected prepay speeds, defaults, future interest rates, and market yield requirements.
Level1Analytics' valuation approach is rooted in the daily methodology of loan officers to price loans. We determine eligibility of a loan for a given product by slotting it to various investors’ product listings, and then pricing that loan by inspecting the prices available from published sources, namely investor’s rate sheets. By slotting the loans to products that are currently being bought and sold on a daily basis, and pricing them based on these major aggregators’ rate sheets, Level1Analytics effectively transfers the complex forecasting requirements to the secondary markets, ensuring an accurate, transparent result.