SOURCE: LoanInsights

LoanInsights

June 24, 2009 16:57 ET

Independent Research Firm Features LoanInsights SMART Platform in Latest "Hot Banking Tech Companies To Watch In 2009: Q2 Update" Report

LoanInsights SMART Is the First Fully Automated, Scalable Platform That Efficiently Analyzes the Value of Residential Mortgage Backed Securities (RMBS) Issuances

SAN FRANCISCO, CA--(Marketwire - June 24, 2009) - LoanInsights, a San Francisco-based financial services and technology company, today announced that Forrester Research features the LoanInsights SMART (Securitized Mortgage Asset Resolution Tool) platform in the June 2009 "Hot Banking Tech Companies To Watch In 2009: Q2 Update" report.

The newly launched LoanInsights SMART enables banks, hedge funds and investors to accurately and efficiently value large pools of Residential Mortgage Backed Securities (RMBS), helping them to increase liquidity and returns, while reducing risk.

Written by Ellen Carney, Forrester's Senior Analyst, the "Hot Banking Tech Companies To Watch In 2009: Q2 Update" report, states, "LoanInsights is addressing the pricing of assets that underlie trillions of dollars worth of mortgage backed securities (MBS)." The full report is posted at http://www.loaninsightssmart.com/files/Hot%20Companies%20Update.pdf.

In assessing the MBS issue, Carney wrote, "When valuations and credit collapsed, investors, regulators, and agencies such as the Federal Deposit Insurance Corporation (FDIC) and Federal Reserve needed to answer two big valuation questions: how should these assets be carried on bank balance sheets and how much can they be sold for in the open market? Because the current value of the MBS is derived from the current value of the property and what can be underwritten in today's lending environment, solutions like LoanInsights SMART bring the transparency needed to produce an accurate value to what's now charmingly referred to as 'toxic assets.'"

"We are very gratified to be one of just a small group of technology providers to be selected by the leading independent industry analyst Forrester Research for its influential 'Hot Banking Tech Companies To Watch In 2009: Q2 Update' report," said Jonathan Strike, President and Co-Founder of LoanInsights. "Our SMART platform is gaining increasing industry recognition by providing an important and powerful solution to the serious problem of valuing the billions of dollars in distressed assets that continue to impede the much needed recovery of the financial system."

In the report, Carney provides details on the SMART solution: "SMART works by aggregating the lending guidelines of both big mortgage lenders and the loans that government agencies insure in order to assess the current mortgage market. SMART then takes a bottoms up approach in assessing how loans in a portfolio can be underwritten to produce an overall valuation of the mortgage portfolio."

The Forrester report also states: "SMART accelerates the mortgage modification and workout process by finding the underlying property addresses and borrowers in an MBS securitization and providing investors and lenders with the most current property valuations."

Proven Track Record

The LoanInsights team has been working for the past twelve months with investor groups, including hedge funds and private investors, to test the SMART process and technology platform in Beta mode. During this time, the investors realized an unleveraged annual return on equity in excess of 30% on those portfolios analyzed and liquidated through the SMART platform. In addition, the homeowners who were part of the program refinanced into lower, fixed-rate mortgages, and in some cases actually reduced their overall mortgage balances.

About LoanInsights

LoanInsights was launched in 2007 by a team of highly skilled technology, financial and real estate professionals. Created originally as an online custom search portal to help consumers find the best possible home mortgage for their particular circumstances, LoanInsights expanded its business model in light of the economic turmoil in the mortgage and related securities markets. The company has leveraged its existing patent-pending software technology and financial expertise to launch LoanInsights SMART (Securitized Mortgage Asset Resolution Tool), which allows the analysis of large securitizations of mortgages and Whole Loans to help financial investors (and others) objectively and accurately value and arbitrage distressed mortgage assets.

The company is headquartered in San Francisco and is privately funded. For more information, visit www.LoanInsightsSmart.com.