BlackRock picks TransUnion for RMBS borrower tracking

BlackRock Solutions, the risk management arm of investment bank BlackRock (BLK), recently chose a TransUnion technology to further evaluate loans in mortgage-backed securities for BlackRock clients. TransUnion’s Consumer Risk Indicator uses loan-level data and matching algorithms to identify the credit risk for an individual borrower. The product is based on securities data from CoreLogic (CLGX) LoanPerformance technology. Tim Martin, group vice president of TransUnion’s capital markets unit, said many mortgages look similar on the surface in terms of loan-to-value ratio, geographic concentration, and credit score, but often perform vastly different over time. “Our loan-level data starts with the underlying borrowers behind the mortgages and provides a complete, anonymous picture of their full credit profile and performance,” Martin said. BlackRock now receives a borrower’s full credit file, which is updated twice a month by TransUnion and includes information about second liens or home equity lines of credit, credit card loans and auto loans. By looking at each individual borrower and the attached risk of default, BlackRock can accurately determine the health of mortgage-backed securities. “The data provided by TransUnion’s Consumer Risk Indicators allows BlackRock Solutions’ clients to make even more enhanced investment decisions on whole loans and residential mortgage-backed securities,” said Robert Goldstein, head of BlackRock Solutions. “The ability to see detailed borrowers profiles behind seemingly comparable securities allows our clients to make the most informed decisions possible.” Write to Christine Ricciardi.