The LIBOR Transition, Part 3: No SOFR for FHA

2/19/21 10:00 AM

With contributions by Josh Goldberg

This is the third in a series on the end of the London Inter-Bank Offered Rate (LIBOR), a widely used financial metric that is integral to global finance. In this post, we discuss the implications for the reverse mortgage market not adopting SOFR (yet). In the past two posts, we covered why LIBOR is being discontinued and what is going to be the primary replacement. As the publishing deadline for LIBOR approaches, and as we see more headlines like this one that quantify the expected costs of discontinuing LIBOR, we are pivoting the focus of the series to discuss the implications for some of our clients here at Summit.

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Topics: Summit Blog, LIBOR, interest rates, SOFR

The LIBOR Transition, Part 1: SOFR, So Good

1/29/21 10:00 AM

This is the first in a series on the end of the London Inter-Bank Offered Rate (LIBOR), a widely used financial metric that is integral to global finance. In this post, we cover why LIBOR is being discontinued, why that is important, and what is replacing it.

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Topics: Summit Blog, LIBOR, interest rates

Economist’s Corner: Indicators to watch this fall

10/23/20 10:33 AM

Back in March, I posted about how Summit is approaching our forecasts for the U.S. economy during the COVID-19 pandemic and how we are creating reactive and flexible models that overweight new or recent data compared to traditional models. In the six and a half months since then, the volatility in many economic measures proven remarkably persistent. Or, to put it more bluntly: the economy is still a wild ride. As such, I am sharing a few notes on the key factors that are driving the current state of the economy, as well as the indicators that I am watching closely to understand what might come next.

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Topics: Summit Blog

Summit releases new white paper: Summit's Approach to Mitigating Unforeseen Risks

9/9/20 10:02 AM

The COVID-19 outbreak reminds us that low-probability, high-risk events are inevitable. Therefore, responsible organizations must be prepared for any event, even if their form is hard to predict.

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Topics: data analytics, white paper, COVID-19, Summit Blog, unforeseen risks

Opinion paper: Impact of Covid-19 on the Mortgage Industry

5/18/20 9:49 AM

Summit's Dr. Albert Lee, Balint Peto, and I examined several economic scenarios based on Covid-19's impact on the economy, with special focus to its impact on the mortgage markets.
 
Many of Summit's clients are directly involved in lending and grant programs, and the disruption to the economy will be directly relevant to their existing and future portfolios. This opinion paper discusses different paths the recovery may take, explores detailed impacts on certain funding markets, and analyzes which outcome seems most likely.
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Topics: Mortgage Finance, white paper, COVID-19

Complexity Simplified: Summit Consulting's Dr. Albert Lee and Dr. Mark Hutson discuss Dr. Lee's recent paper Predictive Analytics: the New Tool to Combat Fraud, Waste, and Abuse

3/31/20 2:04 PM

Dr. Albert Lee, Founding Partner of Summit Consulting, talks with Dr. Mark Hutson, Summit’s Manager of Data Science and Modeling & Statistics about his recent paper Predictive Analytics: the New Tool to Combat Fraud, Waste and Abuse.

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Topics: data analytics, predictive analytics, Complexity Simplified (podcasts)

Modeling COVID-19's Impact

3/25/20 9:47 AM

At Summit, we provide our clients with data-driven insights, typically basing our results on readily available historical data. We use these data to build models for assessing policy decisions and understanding economic impacts based on what we know has happened and what we think will happen next. Then we combine our judgement with historical information to predict the magnitude of these results. Yet today, many of our clients are scrambling to understand the most likely impacts of COVID-19 on their respective portfolios of business, despite it being an event with few (or any) historical parallels. The question becomes, how do we use historical data and existing tools to determine anything better than a wild guess?

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Topics: data analytics, Modeling COVID-19, data-driven insights

Summit Uses Analytics to Estimate Hurricane Impacts on Operations

9/13/18 1:49 PM

**Note: This post was written in September 2017.**

The hurricanes that hit Texas, Florida, Puerto Rico, and the U.S. Virgin Islands in 2017 left devastating destruction in their wake, resulting in untold costs and disruptions to millions of people, businesses, and the government. The necessary response effort to address the immediate damages, related negative economic impact, and subsequent rebuilding, will use tremendous resources and exceptional diligence. This includes costs and long-run impacts that will not be realized for several years, compounded by the uncertainty around how large the impact will be on individuals, businesses, and government agencies operating in or around the affected areas.

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Topics: econometrics, dynamic forecasting

IN THE NEWS: The Estate Tax, Part 3 – BONUS: Why Is It Hard to Measure Income from Assets?

12/26/17 9:26 AM

Our recent two posts about the Estate Tax talked about some problems with calculating income, but focused primarily on capital gains. Today, we’ll run through an example of how other assets are subject to similar problems, such as how rents and usage charges can be complicated to assess.

Take, for example, rents on an apartment. Let’s assume that you lease an apartment and agree to pay $1,000 each month, which in DuPont Circle means that you’ll have about 700 square feet and 11 roommates. Each time you make a payment, the landlord has to pay taxes on that rent, right?

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Topics: tax

IN THE NEWS: The Estate Tax, Part 2 – Reducing Complexity for Heirs

12/15/17 3:07 PM

We recently covered the idea of unrealized income and why people suddenly see a bunch of income when they die. Today, we’ll discuss how the Estate Tax actually makes life easier for heirs.

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Topics: tax

About the Summit Blog

Complexity simplified.

Summit is a specialized analytics advisory firm that guides clients as they decode their most complex analytical challenges. Our blog highlights the strategies and techniques we use, as well as relevant topics in current events.

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