JERSEY CITY, N.J., Nov. 2, 1998 /PRNewswire/ -- Mortgage Risk was recently selected by Standard & Poor's to provide the automated valuation model component (AVM) for LEVELS. With Mortgage Risk's assistance, Standard & Poor's has developed new ratings criteria for adjusting the LTV for mortgages seasoned more than six months since origination. The new criteria allow more refined estimates of required subordination levels.

Standard & Poor's is using Mortgage Risk's Home Price Indexes to adjust each property's value for changes in prices in the local market. The extent to which the adjustments are incorporated into Standard & Poor's LEVELS rating model depends on S&P's analysis of a variety of statistical measures that are unique to each index released by Mortgage Risk.

"We've worked closely with Standard & Poor's for several months to determine the best use of our Home Price Indexes," said Douglas L. Bendt, president of Jersey City, NJ-based Mortgage Risk Assessment Corporation. "Our Home Price Indexes are primarily determined by homes' actual sales prices but are also influenced by such factors as population density, turnover rates, and the price tiers we analyze. S&P's decision of how much of the adjustment to pass forward is based on these factors as well as statistical confidence intervals and what geographic level of index was used, such as zip code, county, or metropolitan area."

Mortgage Risk's Home Price Indexes are constructed using repeat sales methodology, which was pioneered by Richard Muth in 1961. Its network of data suppliers allows valuation of 75% of the housing stock in the nation in more than 150 metropolitan areas covering over 400 counties in 42 states. Mortgage Risk's database consists of almost 10 million pairs of sales transactions, the largest such database of its kind.

For more information about Mortgage Risk Assessment Corporation contact: Douglas L. Bendt, 201-413-1900, or visit the company's web site: http://www.Mortgagerisk.com.

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