Kristin Moyer

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Entries Tagged as 'loan portfolio management'


Loan Portfolio Management, for Mortgage?

by Kristin Moyer  |  November 2, 2009  |  3 Comments

Contrasted to credit card issuers and consumer lenders, mortgage servicers are being less aggressive with the use of predictive analytics, optimization and behavior modeling.  For one thing, mortgage servicers have fewer levers to use and less data to leverage in reducing loss compared to issuers of revolving credit.  The cost of servicing has also gone [...]

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Credit Card Issuers Further Ahead with Pattern-based Strategies

by Kristin Moyer  |  October 23, 2009  |  1 Comment

Mortgage servicers have been slow to adopt loan portfolio management (a technology that supports pattern-based strategy) and continue to suffer heavy losses.  Contrasted to this, credit card issuers have been aggressive with adopting loan portfolio management to seek, model and adapt. For example, credit card issuers are reducing limits on consumers whose risk profile is [...]

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Loan Portfolio Management – A Pattern-Based Strategy

by Kristin Moyer  |  October 21, 2009  |  3 Comments

Gartner has been writing about Pattern-Based Strategies for some time now.  It’s an existing body of research, here are some examples (for paying customers): “Introducing Pattern-Based Strategy“ “Balance Investment in Four Categories to Support Pattern-Based Strategy” “Five Eras of IT Business Value Add: From Automation to Pattern-Based Strategy” “CEOs and Chief Strategy Officers: Balance Investments [...]

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Re-engineering Lending Profitability

by Kristin Moyer  |  October 20, 2009  |  Comments Off

In addition to dealing with delinquency and supporting other risk management capabilities, loan portfolio management can also be used to rebuild portfolio profitability and growth in the face of volatile conditions and regulatory change. Regulatory change, falling balances, record delinquencies and general recessionary stress require a new approach to credit cards.  Loan portfolio management can [...]

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More Use Cases for Loan Portfolio Management

by Kristin Moyer  |  October 19, 2009  |  5 Comments

We’ve previously posted on use cases for loan portfolio management.  We know extend this list.  Loan portfolio management can reduce credit loss in the following ways: Distressed portfolio management – ability to determine the optimal treatment strategy: Loan modification Short sale Third party sale Foreclosure Loan modification risk – ability to analyze the risk of [...]

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“Who” is Important, but “Why” Shows the Way Forward for Delinquency Treatment Strategies

by Kristin Moyer  |  October 16, 2009  |  2 Comments

One thing loan portfolio management can do is to identify borrowers in distress.  This is very important for revolving lines of credit, as it enables lenders to take action on credit lines before problems go deeper.  But what about non-revolving credit, like mortgage for example?  Does identifying borrowers in distress really help?  Yes, but “why” [...]

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Loan Portfolio Management in the US Mortgage Industry – What About HAMP?

by Kristin Moyer  |  September 28, 2009  |  1 Comment

Loan portfolio management in the US residential mortgage industry has hit a speed bump.  The Home Affordable Modification Plan (HAMP) uses a rule-based formula for driving the terms of a modified loan to 38% debt-to-income (DTI) ratio, with the Treasury matching further reductions in payment to 31% DTI for the borrower.  This leaves no room for intelligent [...]

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Default Management Isn’t Enough

by Kristin Moyer  |  September 23, 2009  |  1 Comment

While GDP is returning to growth in many countries and some economists and government agencies are declaring “recovery,” tell that to the banking industry. Significantly more losses are set to occur in the banking and investment services industry (sources IMF, McKinsey and others), particularly in the area of residential mortgage, commercial real estate, credit cards [...]

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The Emergence of Loan Portfolio Management

by Kristin Moyer  |  July 15, 2009  |  2 Comments

Loan portfolio management is an emerging technology solution that provides analytics, modeling and optimization – ideally (though not yet) across lending instruments (mortgage, HELOC, syndicated loan).  Loan portfolio management leverages not only borrower attributes, but also macro-economic factors such as real estate attributes by geography, unemployment data, projected interest rates and other factors.  Loan portfolio management executes analyses at both the portfolio [...]

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