Interactive Data Corporation, a provider of financial market data, analytics and related solutions, today announced that it will offer a new evaluations service for US whole loans (non-securitised residential mortgage loans). This service is expected to be available in the second quarter of this year.
The new evaluations service can help financial institutions with the valuation of whole loans, which are becoming increasingly more common in banks’ holdings. According to Federal Reserve data, commercial banks’ residential whole loan assets totalled US$1.56 trillion as of 12 January 2011. Utilising a combination of powerful computational processing and analytical expertise in providing evaluated pricing for a wide variety of fixed-income instruments, Interactive Data is building an innovative service to provide evaluated prices for residential whole loans based on observable inputs from the securities markets.
The new service, which will cover both performing and non-performing whole loans, complements the Company’s current offerings related to securitised debt and other asset classes, which include: US agency pass-through securities, agency and non-agency collateralised mortgage obligations, asset-backed securities, and commercial mortgage-backed securities. Interactive Data provides evaluations for an estimated 98 percent of outstanding US structured securities.
“Our new offering leverages Interactive Data’s team of experienced evaluators with extensive knowledge of the whole loan market, along with an advanced parallel processing platform,” said Liz Duggan, managing director, Global Evaluations for Interactive Data. “As with many of our initiatives, this effort was driven directly by our clients’ demand for a unique service to address a growing asset class where there is currently limited or no independent evaluations coverage.”