Level1Loans Price Index:
Providing a central repository for valuing non-Agency, nonconforming loans.
Level1Loans Price Index (“LPI”) provides valuation and price indications primarily focused on non-Agency and nonconforming loan products. LPI will aid lenders in determining fair market value, as defined by the recent FAS 157 accounting regulation, for loan portfolios held for sale or investment.
LPI compiles pricing data from approximately 20 major investors who publish eligibility and pricing guidelines for newly originated loans. Eligibility guidelines and pricing information are maintained daily through the combined services of AllRegs and Mortech’s Marksman pricing engine. LPI checks eligibility and prices thousands of different loans every day to determine real-time benchmark prices for a large number of loan types with a variety of credit characteristics.
Level 1 Loans offers a complimentary 2 week trial of the LPI Service allowing users to receive daily, weekly, or monthly price indications for popular products coupled with the ability to quickly access more detailed pricing for non-standard products.
To sign up for the trial period, please Click Here.
Dr. Thomas J. Healy, CMB, President of The Servicing Source noted that, “Through the LPI free service, we’re exposing a central repository of pricing data for non-standard loan products based on true market conditions. With this information, mortgage professionals can keep pace with industry pricing trends and assign value to their loan portfolios objectively and transparently as compared to traditional subjective methods such as cash flow modeling or benchmarking against securities that may or may not be analogous to the characteristics of the portfolio in question. LPI identifies what the active loan market will pay for an asset with extremely similar characteristics as of the measurement date…arguably Level 1 and at worst Level 2 in accordance with FAS 157.”