Mortgage Information Corp. has formed a data base of subprime, or B and C, mortgage loans. The data will be used to track performance of loans made to homeowners with less-than-perfect credit.
The data base will include 700,000 mortages initially, and will be updated monthly, the company said.
Mortgage lenders, servicers, and investors can use the data to benchmark performance, and to monitor credit risk in their nonconforming loan or servicing portfolios.
The data base will be accessible as a separate section of the Loan Performance System, Mortgage Information's conforming-loan data base.
Subprime mortgages have drawn increasing attention from lenders in recent months because of the higher profit margins available. With volume growing, investors have been looking for better ways to evaluate the degree of risk involved.
Various other vendors, including mortgage insurers and the Federal Home Loan Mortgage Corp., known as Freddie Mac, are offering the industry resources to evaluate and track subprime loans.