Portfolio Surveillance

Portfolio Insights Suite

By Becca Smith
September 4, 2024 | 6 min read

The RAP® Portfolio Insights Suite uses advanced analytics to improve customer retention and increase growth for innovators in the origination and servicing space.

Retention here refers to the ability of a mortgage lender to keep existing mortgage customers and loans within its portfolio.

Retention Strategies often include:

Offering competitive interest rates and loan terms
Providing timely and attractive refinance options to prevent customers from moving to other lenders.
Implementing loyalty programs or incentives for long-term customers

Portfolio Growth is defined as the expansion of a lender’s portfolio by acquiring new mortgage loans.

Strategies often include:

Developing new mortgage products to attract a broader range of customers.
Enhancing marketing efforts to reach potential new customers.
Expanding into new geographic markets
Forming partnerships with real estate agents, builders, and other relevant entities
Offering competitive loan terms and innovative mortgage solutions

Both retention and growth are crucial for a mortgage lender’s financial health and overall market competitiveness. Retention helps ensure a stable revenue stream from interest payments on existing loans, while growth helps increase market share and overall revenue potential.

The RAP® Portfolio Insights Suite takes a data-driven approach to portfolio retention and growth strategies.

Introduction

Track current LTV and borrower equity, inclusive of subordinate lien monitoring for your active portfolio. See how many properties in your active portfolio are listed and how many have notice of defaults filed. Get natural catastrophe alerts and risk scores associated with your active portfolio. Visualize regional trends.

1. Portfolio Match & Append. Match your monthly portfolio paid in full snapshot with ICE data to get a unique property ID assigned. This allows you to utilize the ICE Property, Real Estate and Mortgage datasets and tie them back to your own portfolio.

2. Match Active portfolio that is now mapped to the ICE distinct property ID to the active lien table to get all open primary and subordinate lien information.

3. Query results that match active portfolio properties for pre-foreclosure detail , VRE real estate listing detail and avm values.

%%pretty 

query = """ 
create or replace temp view open_liens as  
select i.loannumber, i.fipscode as fipscode, i.assessors_parcel_number,  
max(a.loan_sequence_no) as open_lien_count, 
sum(a.loan_amount) as open_lien_amount 
from ma_input i 
inner join public_records.activeloan a on 
i.fipscode = a.fipscode and i.assessors_parcel_number = a.assessors_parcel_number_apn_pin 
group by 1, 2, 3 
""" 

spark.sql(query)

%%pretty 

query = """ 
create or replace temp view prefc as  
select i.loannumber, i.fipscode as fipscode, i.assessors_parcel_number,  
max(n.lpsinternal_pid) as lpsinternal_pid 
from ma_input i 
inner join public_records.nod_nationwide n on 
i.fipscode = n.fipscode and i.assessors_parcel_number = n.assessors_parcel_number     
group by 1, 2, 3 
""" 

spark.sql(query)

%%pretty 

query = """ 
create or replace temp view vre as  
select i.loannumber, i.fipscode, i.assessors_parcel_number,  
max(v.ds_internal_pid) as ds_internal_pid 
from ma_input i 
inner join public_records.vre_active v on 
i.fipscode = v.ds_fipscode and i.assessors_parcel_number = v.ds_apn     
group by 1, 2, 3 
""" 

spark.sql(query)

4. Calculate LTV, inferred IR, equity and assign prepay score (1 = lowest prepay propensity; 10 = highest) to each active loan based on LTV, Equity, IR, market conditions and active lien detail.

5. Optional - Summary dashboard in Tableau

Sources:

https://mortgageinnovators.com/a-guide-to-customer-retention-in-the-current-mortgage-industry/

Becca Smith, Director, Mortgage Data & Analytics

Becca has over 10 years of experience as a Data Scientist implementing Machine Learning and AI solutions within the life sciences, healthcare, manufacturing and financial services industries and 4 years of experience as a product leader. She holds a Bachelor of Science in Computational Biochemistry from the University of Texas at Austin and a Master of Science in Analytics from the Georgia Institute of Technology.