PwC’s Market Analytics & Portfolio Surveillance

Deal analytics

An “on call” engagement model, where transaction specialists and data analysts come together to use company, target, and third party data to drive better insights and quicker decision making.

PwC’s MAPS team has experience consolidating multiple data sources for a transaction, conducting data validation, completing a detailed analysis, and developing interactive dashboards to help you holistically understand the portfolio.

Examples of our work include:

• Historic line of credit analysis to get a true sense of utilization
• Synergy analysis on mutual customers, products, locations and customer tranches as applicable from a current and historical view
• Loan level lookbacks to support deep dives into financials and performance metrics
• Develop dashboards to automate credit underwriting and stratification analysis to quickly understand the portfolio up for bid
• Combine macro-economic data with financial information to create a holistic picture of a company’s performance and review how the company handles different cyclical patterns

Please reach out to Jacquelyn Studdert for more information.

Consolidated data analytics

Loan level data sets paired with macro economic indicators to tell a meaningful story.

With the ability to take in billions of rows of data instantly, PwC's MAPS gives a multidimensional view across many data sources that helps our team provide a holistic perspective for clients.

Please reach out to Jacquelyn Studdert for more information.

Testing & process analytics

PwC has the capabilities in-house to support the automation of your manual processes and testing functions to reduce costs, increase the testing population, and improve quality.

Manual loan level testing and workflows through the origination and servicing process can be time consuming and prone to error. In response, PwC is working with clients to identify automation opportunities and implement analytic tools to automate manual testing & processes.

Examples of our work include:

• Workflow automation for loan origination
• Loan level QA and QC testing of data accuracy
• Automated TRID analytics tool
• Mortgage KPI Monitoring tool

Please reach out to Jacquelyn Studdert for more information.

Proprietary benchmarking

MSR surveys

A suite of monthly and quarterly surveys designed to help originators compare their key costs to peers and provide MSR valuation and modeling assumptions.

PwC’s MSR surveys include 30+ participants including 20 of the largest residential mortgage servicers.  Currently the surveys are performed in two distinct tiers based on the size of unpaid principal balance serviced for others as follows:

Tier 1 (Large Servicer Surveys) – quarterly

• MSR multiple survey – benchmarks MSR multiples on a product and portfolio level including sensitivities to changes in interest rates and volatility
• MSR Assumptions survey – benchmarks key assumptions and modelling techniques for MSR assets including discount rates, cost to service, ancillary fees, prepayment modeling and mortgage rate modeling
• MSR initial cap survey – benchmarks MSR multiples for newly capitalized servicing utilizing theoretical loans for base and excess servicing across multiple key product types

Tier 2 (Medium/Small Servicer Survey) – semi annual

• Tier 2 MSR Multiple Survey – condensed version combining all 3 elements of the Tier 1 survey (multiple/assumptions/initial cap)

Please reach out to Steve Robertson for more information.

Mortgage cost origination survey

The mortgage origination cost survey is a monthly program designed to help mortgage originators understand how they compare to their peers in key cost and performance metrics across various channels and products.

• Understand performance
• Monitor trends
• Identify opportunities

Please reach out to Steve Robertson for more information.

Mortgage Retention Survey

The Mortgage Retention Survey is a quarterly program designed to help  mortgage originators understand how they compare to their peers  in key retention metrics across various channels and  products. 

Please reach out to Roberto Hernandez for more information. 

CECL benchmarking studies

One time mortgage and credit card studies designed to enhance management’s ability to identify blind spots in its approach and explain differences in outputs across a peer segment.

Mortgage study

• The study will provide predetermined cardholder profiles and a representative residential mortgage portfolio. The study will also provide representative base case MEVs so that participants can align to their most similar model scenario.
• Upon running the sample portfolio through their set of CECL models, participants will provide PwC with model outputs, such as forecasted losses and loan performance curves in a predetermined format, along with responses to study questions.
• PwC will show the study results by participant on an anonymous basis, allowing management to visualize how their model results compare to peers.

Credit card study

• The study is designed to provide insight into how an issuer’s payment application methodology compares to peers for outstanding balances across a range of consumer profiles.
• For 14 predetermined borrower profiles, PwC will provide an initial balance and future borrower sales, balance transfer, cash advance and payment activity. The study will ask each participant to provide the expected outstanding CECL balance through 60 months using the anticipated CECL payment application waterfall methodology.
• For each borrower profile, study results will visually show how your CECL balance decreases over time as compared other participants, on an anonymous basis.

Please reach out to Steve Robertson for more information.