NEW YORK and ATLANTA, Sept. 23,
2019 /PRNewswire/ -- Andrew
Davidson & Co., Inc. (AD&Co) and Equifax Inc.
(NYSE: EFX) today announced a new collaboration designed to bring
enhanced analytic insights to mortgage capital markets. This joint
effort will couple the advanced analytics and modeling capabilities
of AD&Co with comprehensive data and information from
Equifax. The first collaborative offering is designed to help
investors in Fannie Mae Connecticut Avenue Securities® (CAS)
leverage trended credit data from Equifax via a new, enhanced
version of AD&Co's credit model.
"By combining Equifax trended credit data and Fannie Mae CAS
data, you gain an unprecedented opportunity to study the
interaction of borrower characteristics and loan dynamics at
scale," said Andrew Davidson,
President of Andrew Davidson &
Co., Inc. "Trended data from Equifax helps to deliver more
predictive insights and adds another dimension to our modeling that
was previously unavailable."
Equifax trended credit data reveals useful patterns in how
consumers are making payments and managing credit lines based on 24
months of FCRA-regulated tradeline level data. Trending and
analyzing anonymized data over a period of time can reveal insights
into financial behavior. This view supplements the traditional
static credit snapshot with a dynamic picture of lending product
risk levels, behaviors and characteristics.
"AD&Co has been working with some of the world's leading
financial institutions and investment managers for nearly three
decades. They recognize that trended credit data has become the new
paradigm in consumer credit analytics," said Geoffrey Hickman, Managing Director of Capital
Markets at Equifax. "We believe that the new AD&Co model will
enable Fannie Mae CAS bond investors to harness the potential of
this important information in their analytics. We are pleased to be
combining forces with such a respected industry leader for this
initiative."
Laurel Davis, Vice President of
Risk Transfer at Fannie Mae, said, "We applaud Andrew Davidson & Co and Equifax on their
new collaboration. We support their efforts to advance the quality
of mortgage data and analytics and make it available to the broader
market. Improved understanding of the risks and compensating
factors in Fannie Mae mortgages can improve investor confidence in
our CAS program."
The enhanced AD&Co credit model leveraging trended credit
data from Equifax will be available in 2020. Development of this
new model was sparked by intensive AD&Co research on Fannie Mae
CAS data in early 2019. A white paper on the use of trended data in
analyzing and forecasting mortgage delinquency rates is available
here.
ABOUT AD&CO
Andrew Davidson & Co., Inc.
(AD&Co) was founded in 1992 by Andy
Davidson, an international leader in the development of
financial research and analytics, mortgage-backed securities
product development, valuation and hedging, housing policy and GSE
reform and credit-risk transfer transactions. Since its inception,
the company has provided institutional fixed-income investors and
risk managers with high quality models, applications, consulting
services, research and thought leadership, aimed at yielding
advanced, quantitative solutions to asset management issues.
AD&Co's clients include some of the world's largest and most
successful financial institutions and investment managers. For more
information, visit www.ad-co.com.
ABOUT EQUIFAX INC.
Equifax is a global data,
analytics, and technology company and believes knowledge drives
progress. The Company blends unique data, analytics, and technology
with a passion for serving customers globally, to create insights
that power decisions to move people forward. Headquartered in
Atlanta, Equifax operates or has
investments in 24 countries in North
America, Central and South
America, Europe and the
Asia Pacific region. It is a
member of Standard & Poor's (S&P) 500® Index, and its
common stock is traded on the New York Stock Exchange (NYSE) under
the symbol EFX. Equifax employs approximately 11,000 employees
worldwide. For more information, visit Equifax.com and
follow the company's news on
Twitter and LinkedIn.
FOR MORE INFORMATION
Ashlea Bonds
Media Relations for Andrew Davidson
& Co., Inc.
212-274-9075
ashlea@ad-co.com
Kate Walker
Media Relations for Equifax USIS
404-885-8058
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SOURCE Equifax Inc.