Matrix Bancorp licenses IPS-Sendero's DecisionServ 1.30
Fiserv, Inc. (Nasdaq:FISV) said its IPS-Sendero unit, a provider of technology solutions and education for strategic balance sheet, profitability and corporate performance management, has introduced DecisionServ Version 1.30 for financial services companies and also announced that Matrix Bancorp Inc. (Nasdaq:MTXC) has selected the new release for its use.
0
External
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
DecisionServ Version 1.30 allows users to calculate the Option Adjusted Spread (OAS) given the value of any segment of their mortgage assets. The OAS model in DecisionServ is generated from the LIBOR (London Inter Bank Offering Rate) Market model. DecisionServ also provides risk measures such as Duration/Convexity and option cost of mortgage assets, as well as extensive reporting of model variables for each path of the simulation.
DecisionServ's flexible aggregation process allows users to pool loan level records by user selected fields, and can be run at the pool or loan level based on user preference. DecisionServ can also value derivative instruments used to hedge mortgage assets.
"We are really excited about the option pricing version of the IPS-Sendero model," said Mark Garland, senior vice president of Matrix Bancorp. "While it includes an excellent yield curve model and adopts the big commercial prepayment models, the real advantage is a very easy aggregation function. This feature will allow users to better document and monitor risk and take advantage of inefficiencies in the market."
Danny Baker, chief technology officer of IPS-Sendero, said, "DecisionServ also supports a variety of non-standard loan types that include payment cap products, interest only and negative amortization loans. Version 1.30 is a value-add for our clients such as Matrix Bancorp."
IPS-Sendero is a business unit of Fiserv, Inc. and a provider of technology solutions and education for asset liability management, profitability measurement, mortgage analytics, and financial management and planning. Financial institutions of all types use IPS-Sendero products and services to help manage balance sheet risk, measure and manage profitability, develop budgets and forecasts, and produce information needed for sound decision-making.