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Home » Store » News » Better Prepayment Assessment Tool Leads to ‘Zooming Profitability’ for Mortgage Lenders

Better Prepayment Assessment Tool Leads to ‘Zooming Profitability’ for Mortgage Lenders

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Mortgage lenders could get a more accurate read on prepayment risk in new production if they evaluated the “propensity” of a specific borrower to prepay his or her mortgage, rather than focusing on prepayment “probability,” according to an industry consultant. Michael Bykhovsky, founder of San Francisco-based Applied Financial Technology, says the mortgage market mis-prices prepayment risk by some $60 billion a year. His seven-year-old firm offers what he says is the first program
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