DebtX, Boston, launched a new credit-rating system for commercial real estate (CRE) whole loans to enable financial institutions to make better risk and pricing decisions.
DXScore[R] factors in loan characteristics such as collateral type, geography, performance level and loan structure, and produces a common benchmark for comparison. It gives a numerical rating between zero (least creditworthy) and 120 (most creditworthy) to allow institutions to easily compare different CRE loans.
With that insight, banks, insurance companies, warehouse lenders and other institutions can determine whether to buy, hold, originate, monitor or sell a CRE loan as part of an active portfolio management strategy, said DebtX Chief Executive Officer Kingsley Greenland.
"DXScore distills the characteristics of different CRE loans into a single number, so credit risk can be measured accurately across the various CRE...