Mortgage consulting

Overview

Mortgage consulting

Milliman is dedicated to delivering customised and cost-effective solutions to measuring and managing the unique risks associated with originating mortgages, providing credit enhancement and risk share analytics, as well as targeting servicing efficiencies.

Our team of knowledgeable professionals—with a broad spectrum of backgrounds in mortgage banking, actuarial science, economics, insurance, and technology—is specifically dedicated to analysing mortgage and credit risk, and our knowledge of the industry is unparalleled. We adapt our models and solutions not only to reflect current conditions but also to forecast the future. With our suite of services, our clients are better positioned to address today’s challenges and to capitalise on opportunities.

Our consultants specialise in statistical, actuarial, and econometric risk-assessment techniques that are applied to numerous financial and operational processes. We have a core team of experts who use predictive analytics and big data techniques to help clients with:

  • Mortgage default risk scoring
  • Mortgage performance estimates
  • Product development
  • Risk Sharing
  • Strategic/competitive positioning
  • Pre- and post-funding quality control process design and reviews
  • Repurchase scoring
  • Loss mitigation analytics
  • Quarterly loan loss reserving

Cutting edge analytics enhance risk management

Predictive modelling

We provide predictive analytics to help clients with capital requirements, mortgage default scoring analysis, servicing and quality control score triage, repurchase and loan loss reserve model.

Fair lending disparate impact score

Disparate impact claims and other compliance requirements can be significant exposures for mortgage originators and potentially others involved in the process. Our analysis can assist you in proactively understanding your lending footprint.

Risk share modelling and analytics

Our strategic advisory services can assist your firm with evaluation of risk sharing structures, and product development for competitive differentiation.

Mortgage insurance and guaranty

Mortgage-related services include credit risk analysis, capital position studies, reinsurance performance forecasting and metrics, model development, and model validation.

Residential mortgage-backed securities valuation service

Our independent valuation employs sophisticated risk modelling to reveal the intrinsic value of residential mortgage-backed securities.

Unstructured data analysis

Our expertise in data analytics and management, predictive modelling, and data mining meets our clients actuarial analyses needs for financial solvency, pricing assessments and profitability studies, as well as other model validations and evaluation tools.

Strategic advisory services

Competitive differentiation is a requirement to remain relevant and to grow.  Milliman can assist in defining strategies to defend and expand the company and industry’s role in mortgage credit risk management.  Milliman’s has a unique perspective in providing analytics to evaluate your company’s financial capacity for growth as well as managing risk diversification.  Market participants require information for decision-making and confidence in their counterparties.  Milliman can provide capital position studies, risk transfer opinion support for reinsurance, portfolio performance forecasting and other risk management reporting.

Most importantly, Milliman assists our client in interpreting model output and in presenting the results to interested parties including regulators, rating agencies, and investors.  The core competencies of our Actuarial practice complement the critical areas of subject matter expertise required to develop sophisticated credit risk and capital markets structures.


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Services

Related services

Mortgage compliance

Mortgage valuations and reserving

Mortgage feasibility studies

Mortgage government services

Mortgage credit risk sharing analysis

Mortgage performance models

Insight

Milliman mortgage consulting insight

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Lender CRT with the GSEs: A closer look

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Practice Leaders

Connect with Milliman experts

Bjurstrom Kenneth

Kenneth Bjurstrom

Principal, Financial Consultant

Ken is a principal with the Milwaukee office of Milliman and joined the firm in 1998. He manages a practice dedicated to analyzing the financial risks associated with issuing and servicing mortgages, mortgage guaranty insurance, and mo...

Schmitz Michael

Michael Schmitz

Principal, Consulting Actuary

Michael Schmitz is a principal and consulting actuary in the Milwaukee office of Milliman and has been with the firm since 1993. Mike manages a practice dedicated to financial risks such as mortgage guaranty, financial guaranty, and cr...

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