AQA has been popular with owners of and investors in mortgage assets because there is so little trust in traditional ratings.
Exact managing director, Alan Cleary, said: “We knew there was demand for granular level credit risk assessment on mortgage backed assets but the business has taken off at break-neck speed. Lenders and investors don’t want to be in the dark about their risk – you’d be a fool to believe ignorance is bliss in this market.”
The Exact team has now completed due diligence for four major investment banks and hedge funds since introducing AQA. The need for transparency and a clear understanding of the risk and value of mortgage assets is critical – particularly in light of the government guarantee scheme.
Alan Cleary continued: “The AQA service has enlightened our clients to the current level of risk in their mortgage assets and they have used this knowledge to great effect. They finally understand the true value of their RMBS and whole loan books – AQA offers them complete transparency.”
Exact also offers arrears management on the underlying mortgages. Using the information AQA offers, Exact can maximise the performance of a book of loans by intelligently targeting borrowers in the credit collections process.
Cleary concluded, ‘Products like AQA and Exact Intelligent Special Servicing are removing opacity and restoring confidence to the mortgage markets. There’s value in these mortgage assets – it just takes someone like us to put our finger on it.”
