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What is Collateral DNA? Collateral DNA completes the efficiency revolution in mortgage processing through collateral focused data and analytic products. Collateral DNA provides insight on the market, property, and vendor, empowering financial institutions to make informed business decisions at critical junctures in the primary and secondary mortgage cycles. Collateral DNA helps lenders ensure regulatory compliance, mitigate fraud, reduce risks, and forecast the best possible decisions for mortgage portfolios. Why are data and analytic tools important? When first introduced, credit-based data and analytics saved lenders so much time and money that loan origination changed forever, allowing lenders to make more loans with less risk through a fairer, quicker, and more profitable process. Data and analytics became the standard for assessing credit impacts on loans. To complete this efficiency revolution, the same must be done for collateral. Lenders analyze the borrower’s credit. Why not the property’s collateral value? It takes two numbers to make a loan: a credit number on the applicant, and a collateral value for the property. Until recently, collateral information had been slow, unwieldy, and sometimes unreliable. FNC® changed this with its groundbreaking Collateral Management System®, which transformed the paper appraisal reports locked away in filing cabinets into accessible and manageable streams of data. With CMS®, lenders finally had easy access to their records, becoming what one lender called an “efficiency engine” for its users. Millions of appraisal reports pass through the system every year. If a lender agrees to share that data, then it is cleaned of confidential information and aggregated with public record and sales data in the National Collateral Database—the foundation for FNC’s collateral-focused data and analytics. What does Collateral DNA measure? Collateral DNA offers a suite of predictive and descriptive analytic products; some study the property, some analyze the market, and others focus on the vendor offering the opinion. Collateral DNA products can score the appraisal report and the appraiser, judge how similar the property is to those around it, assess fraud risk, confirm the valuations for a pool of loans heading upstream in the market, and provide timely information for virtually anything lenders want to know before funding a loan or bidding on a pool in the secondary market. Who is using Collateral DNA now? FNC’s existing clients are the first to benefit from Collateral DNA’s 360-degree insight, including many of America’s top 50 lending institutions. But these profit-generating tools are available to everyone with a stake in the efficiency revolution. |
