The Prepay by Level1Analytics® model is empirically supportable and eliminates judgment. Driven in the short-term by changes in market rates, and in the long-term by evolving changes in mortgagor behavior, it is a far better reflection of actual mortgagor behavior.
With better, more accurate data, your team is empowered to make the most effective decisions, saving time and money.
Prepayment speeds for the servicing portfolio are based on the L1A proprietary prepay model. This model, driven by several factors, is based on actual mortgagor behavior on more than 20MM residential mortgage loans, analyzed over an economic cycle.
Two curves are used to project loan level prepay speeds by month. These curves are updated monthly based on actual mortgagor behavior. While rates may go up or down pretty significantly from period to period, mortgagor behavior tends to change relatively slowly over time.
Our team is hands-on and knowledgeable, reach out to us for any consultation needs or questions.
info@level1analytics.com
+1 954-483-3424