Reliable Loan-Level Data
Mortgage loans are complex assets and can vary materially in characteristics and risk that change over time. Without reliable loan-level data, it is difficult for lenders and investors to properly assess and monitor the risk of mortgage pools.
MARQ standardises the format, definitions and scope of loan level data, allowing detailed data analysis. MARQ uses the RBA’s data standards, definitions and templates that apply to CLF and repo-eligible RMBS.
The MARQ platform is deployed to an Amazon Web Services (“AWS”) cloud environment and configured for best practice security. Users of MARQ benefit from one of the most flexible and secure cloud computing environments available, designed to satisfy the requirements of the most security-sensitive users. MARQ and AWS implement strong safeguards and segregation as a high priority to ensure customer privacy is protected at all times.
For more information, see: https://aws.amazon.com/compliance/
MARQ analysis is based on a comprehensive set of data requirements with clear definitions, specifying a defined set of risk and other loan-level information for mortgages. Data requirements include:
- Borrower characteristics
- Loan originator
- Loan performance
- Loan terms and conditions
- Property security characteristics.
MARQ’s database contains well-defined risk parameters stratification tables and uses multiple combinations to provide Users with all the information in their required format. It also includes historical information on mortgage loans and historical performance tables on arrears that can be produced for assessment and comparison.
Users can format and produce additional reports in their own format and maintain an independent data base for their own purposes, with tailored and aggregated reporting available on request.
MARQ is designed to provide an analysis platform for Users to conduct their own risk analysis using a standard and tested methodology where Users own their assumptions and parameters.
Standard MARQ analysis is completed using known risk weightings that are then calibrated to Users’ own view of risk parameters. Users can create up to five different sets of risk weights that allow multiple types of risk analysis on multiple deals or mortgage pools with ease in a very short period.
MARQ enables scenarios to be created allowing for deal or portfolio stress testing. The scenario analysis enables Users to stress for house price movements, changes in borrower income and interest rates. For all risk assessments, a risk adjusted valuation measure in the form of a present value can also be calculated.