SunGard and Miac to offer integrated mortgage risk management software

SunGard Trading and Risk Systems, a unit of Pennsylvania-based SunGard, has formed a strategic alliance with New York-based Mortgage Industry Advisory Company (Miac) to develop software that provides treasury departments and mortgage banking units with more integrated risk management and forecasting analytic capabilities.

To date, SunGard’s BancWare product, which provides enterprise-wide risk management analytics software to bank treasury departments, has used different analytics for mortgage assets than those used by bank mortgage departments installed with Miac Analytics software. There has also been some discrepancy in data feeds used by the two systems.

The new initiative, initially limited to the North American market, aims to more closely harmonise the underlying assumptions used in both treasury and mortgage banking departments to offer enhanced financial modelling capabilities to consolidate risk on an enterprise-wide level.

BancWare chief executive, Terence Faherty, told RiskNews that the companies plan to more closely unify their software products by early next year. He said the strategic alliance had resulted from client feedback. “The combination of the two will help clients to have a more complete picture of their balance sheet risk and provide intelligence necessary to drive sound financial decisions,” Faherty added.The new BancWare product will include net interest income simulation, market valuation, funds transfer pricing, budgeting and planning, and profitability analysis. Miac Analytics' new software will value, hedge and measure the price sensitivity of the mortgage pipeline and mortgage servicing rights portfolio, the companies said.

Miac’s clients service $2.9 trillion of underlying residential and commercial mortgage receivables – more than 50% of the US mortgage market – according to a company statement. BancWare is used by more than 240 clients around the world.