MBA Premier Member Profile: Milliman
(One in a continuing series of profiles of Premier Members of the Mortgage Bankers Association.)
Milliman is dedicated to delivering customized and cost-effective solutions to measuring and managing the unique risks associated with originating and servicing mortgages, providing credit enhancement and conducting risk share analytics.
Our consultants specialize in statistical, actuarial and econometric risk-assessment techniques that are applied to numerous financial and operational processes, such as:
–Credit Risk Analytics
–Risk Sharing
–Strategic/competitive positioning
–Mortgage risk scoring
–Mortgage performance estimates
–Product development and pricing
–Loan loss reserving
–Underwriting process and rules engines
–Pre- and post-funding quality control process design and reviews
–Loss mitigation analytics
–Fraud or defect identification tools
–RMBS Valuations•
Every engagement is different and each has its own unique set of opportunities. In recognition of this, we strive for long-term collaborative relationships that address our client’s specific requirements and build upon their successes. Our analysis methodology represents a blend of quantitative and qualitative approaches. Our quantitative analysis is built on a straight-forward yet flexible set of integrated economic and actuarial models. Qualitative approaches are based on decades of direct industry experience. Most of our risk management solutions are based on a foundation of unique modeling “objects” that can be leveraged and shared across many operational areas.
Milliman is among the world’s largest independent actuarial and consulting firms. With more than 3,300 employees and revenues of US$954 million in 2016, the firm serves the full spectrum of business, governmental, and financial organizations. Milliman was founded in 1947 and today has offices in principal cities worldwide, covering markets in North America, Latin America, Europe, Asia and the Pacific and the Middle East. For more information, visit www.milliman.com/mortgage or call (262) 796-3355.
Senior Personnel
–Ken Bjurstrom, Principal and Financial Consultant
–Mike Schmitz, Principal and Consulting Actuary
–Jonathan Glowacki, Principal and Consulting Actuary
–Madeline Johnson, CMB, Executive Financial Consultant
MBA: What is the most important issue facing your company right now?
KEN BJURSTROM: The most important issue facing Milliman is to continue to understand where we are in the mortgage cycle and how technology changes impact our clients in this post-crisis transition period in the mortgage and insurance industry. Changes in technology, data reliance and borrower behavior have significant impacts on the mortgage market. We strive to understand where we are in the cycle and how these changes impact business and financial decisions made by our clients.
MBA: What are some key trends your company is tracking?
BJURSTROM: Milliman is a leading provider of mortgage analytics for GSE credit risk sharing opportunities. We are monitoring the development of this market and trends in credit risk for the mortgage market as a whole. On a monthly basis we analyze all new originations to track whether or not risk is going up, down or remaining constant for the market in aggregate and for individual securities. We have developed several predictive analytics tools to assist with this analysis to highlight specific regions or even lenders of concern. Recently we have noticed a widening credit box and the use of “alternative credit scores” for non-traditional borrowers. While we agree these scoring models have good intentions in providing credit to creditworthy borrowers, we are also aware that there is potential for miss-use.
MBA: Why did your company join the Mortgage Bankers Association?
BJURSTROM: Milliman joined the Mortgage Bankers Association to be a part of a highly productive and entrepreneurial peer group and to obtain educational information and networking opportunities
MBA: How has being an MBA Premier Member benefited your company?
BJURSTROM: Milliman has benefited from being a Premier Member by attending many conferences and industry events as speakers, exhibitors and attendees. We value the networking and educational events the MBA provides as well as the advertising opportunities.
(MBA Premier Member Profiles are a service provided by the Mortgage Bankers Association and MBA NewsLink as a service to MBA Premier Members. Publication does not constitute an endorsement of a particular company, product or service. For more information about the MBA Premier Member program, contact Rashida Holmes at rholmes@mba.org or 202/557-2779.)
