What Is Mortgage Analytics?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 04 December 2019
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"Mortgage analytics" is a term that is used to identify the different strategies used to analysis or assess the condition of a mortgage market. The scope of the assessment may focus on a local market or even have to do with conditions found in the market for an entire nation. With either application, the focus of mortgage analytics is to identify what type of events are leading to the sale and financing of properties, and how those events have an impact on the market proper.

The process of mortgage analytics involves making use of a number of different information sources in order to manage the evaluation process. Depending on the type of evaluation taking place, the source documents may include public records that have to do with transfers of titles, inheritance of real estate, foreclosures, and outright sales conducted by realtors or even by owners. The use of public records is common, although banks and similar institutions will sometimes make use of proprietary information that is owned by the institution as part of the overall process.


Mortgage analytics can be used to create a snapshot of what is happening within the mortgage market in general, or focus on a specific set of factors in order to understand the impact those particulars have on the market. For example, the process may focus on home sales and financing in a given geographic location in order to determine how many mortgages were underwritten by banks versus mortgage finance companies. The analysis may focus on the ratio between first-time financing and the number of refinanced mortgages that occurred within a defined time frame. Data of this type can then be used to project mortgage demand in future periods, using the historical information assembled to relate to the anticipated movement of mortgage rates and the market in general.

The scope of mortgage analytics aid mortgage professionals in getting a better idea of what has occurred in the past, making it possible to relate those events to the future. Doing so can help lenders develop new mortgage packages that are likely to appeal to individuals looking for a first-time mortgage or to refinance an existing mortgage. At the same time, the evaluation of the selected historical data can also help reduce the degree of risk that lenders assume when underwriting mortgages, by providing sound data that shows how well current qualifications are protecting the interests of those lenders. Whether focused on a local market or one that involves mortgage activity over a much larger geographic area, carefully analyzing and evaluating the data can make it easier to spot trends, avoid pitfalls, and in general approach the mortgage lending activity with a better understanding of the marketplace.


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