Arizona MLS Takes Steps to Solve the Financial Crisis

New Mortgage Risk Program Launched for Lenders and Investors

PHOENIX--(BUSINESS WIRE)--The Arizona Regional Multiple Listing Service (ARMLS) is taking steps to reverse the downturn in the metropolitan Phoenix real estate market.

“We understand that this economic crisis started with problems in the country’s mortgage and housing markets, and the crisis will not be resolved until the mortgage and housing problems are corrected”

ARMLS is piloting a collateral risk scoring program for residential mortgage lenders funding home loans in the Greater Phoenix market, in cooperation with HousingUpdate.com and its affiliate web site, MortgageRiskScore.com. This will substantially improve the accuracy of risk forecasting for residential mortgage-backed securities (RMBS) investors buying loans generated in the Phoenix housing market.

Mortgage investors from around the globe were the first to suffer from losses in the sub-prime mortgage market. However, the fear of loss among other investors has caused a flight of capital from the mortgage pipeline, further fueling the market decline.

“We understand that this economic crisis started with problems in the country’s mortgage and housing markets, and the crisis will not be resolved until the mortgage and housing problems are corrected,” states Bob Bemis, chief executive officer of ARMLS.

“While the need still exists for reliable appraisals and portfolio ratings, more must be done in the risk modeling arena. We believe this approach to collateral risk scoring will fill the need for more accurate forecasts for RMBS investors, and that Phoenix is a great place to start implementing the solution to the financial crisis,” Bemis adds.

Similar to the way credit agencies rate a borrower, collateral risk scoring allows lenders to obtain risk grades for mortgage transactions before they are closed. This methodology allows mortgage lenders and investors to minimize risk posed by market factors.

“We want investors to know we appreciate their confidence, and the best way to express that is to do what we can to protect their investment,” Bemis added.

Qualified mortgage lenders, insurers or governmental regulatory agencies can register to participate at MortgageRiskScore.com.

About ARMLS: Arizona Regional Multiple Listing Service is the REALTOR^® owned listing service for central Arizona. ARMLS provides services to more than 32,000 brokers and agents of the Phoenix, Scottsdale, West Maricopa, Southeast Valley, and Western Pinal County Associations of REALTORS^® and their affiliates. For more information about ARMLS, please visit www.armls.com or contact Bob Bemis, CEO, 130 W. Priest Dr, Suite 101, Tempe, AZ 85281, at [e-mail] or 480-303-7224.

About MortgageRiskScore.com: MortgageRiskScore.com and HousingUpdate.com are real estate web sites developed by Robert Rothstein. Mr. Rothstein has been licensed in the real estate industry for over 38 years, serving as an analyst and broker. These proprietary risk forecasting algorithms have been granted two U.S. patents, validated by an independent actuary for mathematical integrity, and successfully applied during expert testimony in court and mediation venues. For more information, please visit HousingUpdate.com or contact Robert Rothstein at [e-mail] or 206-525-7267.