Interthinx White Paper on Retail Loan Portfolio Stress Testing Offers Best Practices

Forecasting accuracy improved by targeting stress to correct model components

Wed, 20 Feb 2013, 13:34:36 EDT

Edited by Debra Tone

AGOURA HILLS, Calif., Feb. 20, 2013 (SEND2PRESS NEWSWIRE) -- The Predictive Analytics group at Interthinx announced today the availability of a white paper outlining its recommendations for conducting stress testing on retail lending portfolios. The white paper, "A Proven Approach to Stress Testing Consumer Loan Portfolios," details the measurements, data sets, and procedures needed to develop more sophisticated economic models to assist lenders in meeting stress-testing requirements.

"Scenario-based forecasting is a critical aspect in assessing a lender's ability to withstand economic stressors," said Michael Smith, chief technology officer and chief architect at Interthinx. "By quantifying the factors driving portfolio performance, we can provide transparency in the modeling process so managers can see why performance changes."

At the crux of this methodology is the isolation of portfolio performance components to separate the non-economic factors that often skew portfolio analyses and provide imprecise results. By considering economic factors separately, retail lenders are able to predict more accurately how different economic scenarios would affect both their portfolios and the overall health of their capital reserves.

When conducting the analysis on behalf of its clients, Interthinx relies on its patented Dual-time Dynamics (DtD) technology, which uses a two-stage decomposition process to analyze rates of change in delinquency, default, and other variables. DtD is able to distill historical portfolio performance down to its core drivers and isolate macroeconomic structure.

"Job one at Interthinx is to develop technology and processes that support our clients' strategic planning and risk mitigation initiatives," said Jeff Moyer, president of Interthinx. "When combined with best practices in selecting economic variables, the information distillation that DtD decomposition provides can be invaluable for organizations seeking to create economic response models for stress testing."

To download a copy of the white paper, visit: http://www2.interthinx.com/Predictive_Analytics_Stress_Testing .

About Interthinx:
Interthinx, a Verisk Analytics (NASDAQ:VRSK) subsidiary, provides essential products and services to mitigate risk in the mortgage and retail lending marketplace. Interthinx offers solutions in mortgage fraud and verification, property valuation, compliance, quality control, loss mitigation, retail loan loss forecasting, and capital planning that are used by the nation's top financial institutions. Interthinx helps its clients minimize risk, increase operational efficiencies, satisfy regulator demands, manage data verification, and remain compliant. For more information, visit http://www.interthinx.com/ or call 1-800-333-4510.

• Permanent shortlink to original copy of this release: http://goo.gl/yRNCF .

Send2Press® is the originating wire service for this story. Terms of Use. © Interthinx. All trademarks acknowledged.

THE CONTENT OF THE ABOVE PRESS RELEASE WAS PROVIDED BY THE NEWS SOURCE ("Interthinx"), WHO IS SOLELY RESPONSIBLE FOR ITS ACCURACY. FOR QUESTIONS ABOUT THIS STORY CONTACT THE NEWS SOURCE AND NOT THIS WEBSITE.

Journalist Resources:
Download original press release as issued including media contact information for Interthinx.

Plain text copy of release

PDF text copy of release

View our news channels by industry topics, by U.S. States, or by selected U.S. Cities:

	> U.S. and World News
	> Advertising & Marketing
	> Aerospace & Aviation
	> Agriculture & Farming
	> Apple, Mac, iPod & iPhone
	> Auctions
	> Auto & Motorsports
	> Banking & Finance
	> Beauty Products
	> Boating, Marine & Maritime
	> Business
	» Alliances & Partnerships
	» Awards and Honors
	» Earning Announcements
	» Funding & Investment
	» Government Procurement
	» INC 5000 Companies
	» International Business
	» Investment Services
	» Management Changes
	» Mergers & Acquisitions
	» New Locations & Growth
	» Patent & Trademark
	» Product Launches
	» Public Companies
	» Reports & Studies
	» Retail & Franchise
	> Communication Arts
	» Fine Art & Artists
	» Graphic & Web Design
	» Journalism & Writing
	» Photography
	» Printing & Packaging
	> Computing
	» Biometrics & Bioware
	» Events & Shows
	» Hardware & Peripherals
	» LBS & GPS Applications
	» Mobile Computing
	» Networks & Encryption
	» Software
	» Support & Warranties
	» VAR & IT Consulting
	> Construction and Building
	» Architecture
	» Building Products
	» Building Projects
	» Business Services
	» Interior Design & Furniture
	> Corporate Social Responsibility
	> Defense & Military
	> Drug Rehabilitation
	> Education & Schools
	> Electronics
	> Employment & HR
	> Energy, Oil & Gas
	> Entertainment
	» Acting & Modeling
	» Books & Publishing
	» Consumer Electronics
	» Fantasy Sports
	» Fashion
	» Industry Services
	» Movies & Film Making
	» Music & Recording Industry
	» Offbeat
	» Online Pubs & eZines
	» Performers & Celebrity

	» Podcasting
	» Pop Culture
	» Radio & Internet Radio
	» Television
	» Theater & Live Events
	» Toys & Games
	» Video & DVD
	» Video Games
	> Environment & Ecology
	> Facilities & Maintenance
	> Family, Parenting & Children
	> Food & Beverages
	> General Editorial
	» African American Interests
	» Brides & Weddings
	» Free Speech
	» Holidays & Seasons
	» Holistic & Spiritual
	» Latino Interests
	» Men's Interests
	» Native American Interests
	» Opinion & Commentary
	» Senior Citizen Interests
	» Women's Interests
	> Global Aid & Relief
	> Government
	» Awards & Events
	» Ballots, Bills & Laws
	» Economic Development
	» Elections & Politics
	» Local & Regional Govt.
	» Protests & Marches
	> Green Business
	> Health, Diet & Fitness
	> Home & Garden
	> HVAC Heating & Cooling
	> Insurance
	> Internet & Websites
	» Blogs and Forums
	» Business & Social Networking
	» Directories & Portals
	» e-Commerce
	» e-Marketing
	» New Websites
	» Online Shopping Sites
	» SaaS, CMS, & Web Software
	» Video, VOD & Streaming
	» Web Development
	» Web Hosting & ISPs
	> Jewelry & Diamond
	> Legal & Law
	> Manufacturing
	> Medical
	» Alternative Medicine
	» Biotechnology
	» Cosmetic Surgery
	» Dentistry
	» Devices & Research
	» Disabilities & 508 Compliance
	» Drugs & Pharmaceuticals
	» Fertility & IVF
	» Hospitals & Nursing
	» Long Term Care
	» Medical & Health Products
	» Medical Business Services
	» Ophthalmology & Vision
	» Private Practice & Groups
	» Surgery & Neurotech

	> Mining & Metals
	> Mortuary & Cemetery
	> NonProfit & Charities
	> Plastics and Chemicals
	> Police, Fire and Rescue
	> Real Estate
	> Regional Events
	> Religion & Churches
	> Restaurant & Hospitality
	> Safety & Security
	> Sciences
	» Astronomy
	» Nanotech
	> SEO Experts
	> Sports & Activities
	» Baseball
	» Basketball
	» Boxing & Weightlifting
	» Football
	» Golf
	» Martial Arts
	» Outdoors & Camping
	» Ski & Snow Sports
	» Soccer
	» Water Sports
	> Stamps & Collectables
	> Taxes & Accounting
	> Telecom & VoIP
	> Theme Parks
	> Trade Shows
	> Transportation
	> Travel & Tourism
	> US & World History
	> Veterinary & Pets
	> Water & Wastes
	> Wood & Glass Products

	> U.S. State Newswires
	> Alabama Business
	> Alaska Business
	> Arizona Business
	» Phoenix Business
	» Sedona Business
	> Arkansas Business
	> California Business
	» Hollywood Business
	» Los Angeles Business
	» Orange County Business
	» Sacramento Business
	» San Diego Business
	» San Francisco Business
	» San Jose Business
	» Santa Barbara Business
	» Silicon Valley Business
	> Colorado Business
	» Boulder Business
	» Denver Business
	> Connecticut Business
	> Delaware Business
	> Florida Business
	» Fort Lauderdale Business
	» Miami Business
	» Orlando Business
	» Tampa Business
	> Georgia Business
	» Atlanta Business
	> Hawaii Business
	> Idaho Business

	> Illinois Business
	» Chicago Business
	> Indiana Business
	> Iowa Business
	> Kansas Business
	> Kentucky Business
	> Louisiana Business
	> Maine Business
	> Maryland Business
	» Baltimore Business
	> Massachusetts Business
	» Boston Business
	> Michigan Business
	> Minnesota Business
	> Mississippi Business
	> Missouri Business
	> Montana Business
	> Nebraska Business
	> Nevada Business
	» Las Vegas Business
	> New Hampshire Business
	> New Jersey Business
	> New Mexico Business
	> New York Business
	> North Carolina Business
	» Asheville Business
	» Charlotte Business
	> Ohio Business
	> Oklahoma Business
	> Oregon Business
	> Pennsylvania Business
	» Philadelphia Business
	> Puerto Rico Business
	> Rhode Island Business
	> South Carolina Business
	> South Dakota Business
	> Tennessee Business
	> Texas Business
	» Austin Business
	» Dallas Business
	» Houston Business
	> Utah Business
	> Vermont Business
	> Virginia Business
	> Washington D.C. Business
	> Washington State Business
	» Kirkland Business
	» Seattle Business
	> West Virginia Business
	> Wisconsin Business

	> World Newswires
	> Australia Business
	> Brazil Business
	> Canada Business
	» Ontario Business
	» Quebec Business
	» Vancouver Business
	> China Business
	> Germany Business
	> Honduras Business
	> Italy Business
	> Mexico Business
	> Spain Business
	> United Kingdom

	> Video News Releases