The future in B2B mortgage risk assessment
- The MARQ score is a measure of relative credit risk for mortgage(s) given the risk characteristics of the mortgage(s).
- MARQ applies to a single mortgage, a pool of mortgages and on the market as a whole.
- A MARQ score is not an absolute measure of riskiness nor is it related to a financing structure.
MARQ Applications
ISSUERS
- Assess mortgage risk at the point of mortgage settlement using the MARQ software.
- Succinctly present securitised deals and the risk of underlying assets. A portfolio MARQ score defines the risk of all underlying assets in a deal as each loan has its own MARQ score. The securitised mortgage portfolio can therefore be divided into bands of MARQ scores allowing issuers discretion around how they market their deal.
- Gain better execution on securitised deals. As a MARQ score represents a standardised amount of loan level data, Issuers could expect better uptake of new deals and ongoing demand to hold MARQ scored MBS.
INVESTORS
- Analyse the credit risk of an investment.
- Compare portfolios using standardised language between each other and the market.
- Marketing tool to attract new funds