...Published in Top 10 Real Estate Journal
--University professors tap fintech for data collection to validate research on secondary market effects from securitization--
BIRMINGHAM, Ala., April 12, 2023 –Quantalytix, the provider of cloud-based Enterprise Bank Management (EBM) software for financial institutions, announced today a partnership with academic researchers from Samford University and Mississippi State University to examine the secondary market effects from securitization, specifically the mortgage securitization process by Ginnie Mae (GNMA). Quantalytix developed a proprietary database that collected and analyzed mortgage market data aggregated to lenders and originators.
Data provided by Quantalytix ultimately yielded key research findings for the housing industry that may have long-run implications for investors and taxpayers in the event of default. The final article, “Risk in Loan Pools of GNMA-Guaranteed Securities: Evidence from Bank and Non-Bank MBS Issuers,” coauthored by Medical Properties Trust Fellow and Associate Professor of Finance Rusty Yerkes of Samford; Mississippi State Assistant Professor of Finance Brian Blank; and Robert W. Warren Chair of Real Estate Finance and Professor Mike Highfield, also of Mississippi State, was published in a top 10 real estate journal, the Journal of Housing Research.
Yerkes said, “We found prior research focuses extensively on mortgage origination but less so on secondary market effects from securitization. While current conditions in the housing market are healthy, any blip in the economy could result in a repeat of the last crisis with securities issued by non-bank institutions experiencing higher default rates than those issued by chartered banking institutions. We are grateful for the support from Chris Aliotta and Will Bryant at Quantalytix. In addition to offering strategic insight, we appreciate their willingness to make Quantalytix data available to us for the purpose of this research study.”
Blank observed, “The growth in non-bank issuers, which pool riskier mortgages, could leave taxpayers on the hook for a larger GNMA liquidity guarantee. Though much attention now is comparing a potential economic downturn to the last financial crisis, many aspects of both the housing and securitization markets have changed, which we were thankful to be able to document using the novel Quantalytix data. Given that these changes were documented prior to recent market volatility, monitoring these conditions through this upcoming cycle will be important. This is an area where the team’s skills and expertise are invaluable, which was evident throughout the research process. As a result, we hope to have the opportunity to collaborate more with them moving forward.”
Quantalytix extracted, transformed and loaded over one billion public records into a single-source, easy to use analytical platform. Additionally, Quantalytix conducted this type of processing on forty billion individual data points comprising roughly half a terabyte in size. The GNMA data Quantalytix provided to aid in this research helped by adding several custom dimensions to expand the quantitative range and analytical capability of the dataset.
“Our technology is built with care, quality and with the future in mind. What differentiates Quantalytix is how we can make large, complex data, useful,” said Chris Aliotta, Quantalytix Co-founder and CEO. “When it comes to big data, Quantalytix is committed to advancing data analytics not just within the banking industry, but in academic research too. If researchers are successful in uncovering key findings by way of our comprehensive data analytics, then both our industry and partners benefit by way of what we do. Our goal is to make information and strategy easy.”
About Quantalytix
Based in Birmingham, Ala., Quantalytix was founded by two former bankers who recognized a void in the current marketplace. In response, the company launched a cloud-based software and enterprise bank management platform that serves as a single-source of truth for reporting, analysis, and profitability to drive actionable analytics. The platform seamlessly integrates with existing business systems, automatically aggregates data and provides real-time views of performance to enable more efficient operations, improve the customer experience, increase profitability and boost productivity.
Working with both traditional and non-traditional lenders, more than $7 billion in loan volume is currently managed on the Quantalytix platform. The platform is SOC2 Type 1 compliant and includes built-in quality assurance checks and sophisticated security features to ensure the highest levels of data integrity.