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Whether buying, holding or selling, analysts in commer-cial banks, loan originators and the secondary marketsknow that valuing a loan portfolio has never been easy.Institutions can be exposed to unnecessary risk or poorperformance when they can not quickly assign accuratescores to individual loans as well as to entire portfoliosof loans. In addition, the complexity of most valuationsystems forces business people to wait for in-houseexpertise whenever an analysis requires even slightmodification, causing costly delays in the decision-making process.

The Insightful Loan Portfolio Valuation Solution providessenior analysts and less technical decision-makers withessential capabilities for improving portfolio profits:

Streamlined, self-documenting process is easy to explain, share and maintain

Flexible and adaptable to fit your existing environment and grow with your changing needs

Score even the largest portfolios at the individual account level for greater accuracy

Create more profitable loan products by identifying drivers of portfolio cash flows and risks

Empower decision-makers to perform their own analysis

HIGHER PROFITS WITH SCALABLE, LOAN-LEVEL SCORINGInvestors today demand more information on the driversthat influence a loan portfolio's performance.Prepayment rates, default risks, underwriting practicesand servicing policies combine to create a product'sunique risk/return profile. Rather than segmenting loansby gross characteristics, Insightful delivers higher accu-racy by identifying the specific borrower and loanattributes that influence the portfolio's cash-flow at theaccount level. It efficiently scores even the largest port-folios at the individual loan level, so buyers and sellersmake more profitable decisions, and lenders have theinformation needed to develop product strategies thatcapitalize on new market opportunities at the point ofloan origination.

The Insightful approach also provides management withpowerful surveillance tools to identify best performingloan products, strategically manage risk, support resid-ual valuations and manage the company's interest-riskexposure. For example, managers can now quantify theperformance of retail versus broker-originated loans, orcompare loan performance of specific originators.

"Our data sets have grown extremely large inresponse to client requests for more detailedportfolio analysis and our need to handleincreasing loan origination volumes. Insightfullets us work with arbitrarily large data sets withease… We also love the transparency providedby the visual interface. It is very valuable inshowing our thought processes as we work onimproving our models."Glenn SchultzDir. of Prepayment Modeling and AnalyticsBanc One Capital Markets, Inc.

"Insightful is on the leading edge of analyticsoftware providing decision-makers with thesolutions required for anticipating opportunity,reducing risk and improving efficiency."Dan VessetResearch Manager, Analytics and DataWarehousing, International Data Corporation(IDC)

F a s t e r , E a s i e r a n d M o r e A c c u r a t e V a l u a t i o n f o r B i g g e r P r o f i t s

Loan Portfolio Valuation

FFIIGGUURREE 11:: The Insightful Loan Portfolio Valuation Solution is a turnkey software, training and implementation services packagethat ensures your success with side-by-side development and tailoring of your first valuation and reporting application.

Decision-makers can execute more profitable exit strate-gies through stronger negotiation with the ratingagencies, and they can justify the premium paid byinvestors for the perceived certainty and quality of cashflows.

Servicing organizations also benefit from Insightful'sgranular approach. Identifying those borrowers withhigher probability to default supports more efficientmanagement of outbound calls, loss mitigation and earlyintervention strategies. Plus, Marketing can target thoseleast likely to default with enhanced products tuned totheir needs.

EMPOWER BUSINESS ANALYSTS TO MAKEBETTER DECISIONS, FASTER The Insightful Loan Portfolio Valuation Solution uses aneasy-to-understand, self-documenting workflow toextend sophisticated portfolio analysis capabilities toless technical decision-makers. Standardized deploy-ment of loan valuation processes improves collaborationand quality of information, and avoids costly mistakesassociated with using multiple spreadsheets or softwareprograms. Your decision-makers will also quickly under-stand what's happening in the analysis and can easilytune the steps to fit their needs, streamlining the loanvaluation and risk management process for improvedefficiency and consistency across your organization.

FLEXIBLE AND SCALABLE TO GROW WITH YOUDetailed loan-level analysis was often impractical onvery large portfolios. But Insightful's solution is uniquelyflexible and scalable, so you get a long-term solution forloan valuation. This industry-proven solution can scoreover 10 million loan records in less than one hour usingcommon server hardware. And when an opening arisesto advance your competitive position with proprietaryanalysis, use Insightful's award-winning S-PLUS language and financial toolkits to power business decisions that leave your rivals behind.

TRANSPARENCY IMPROVES COMMUNICATIONThe visual workflow interface provides a visual history ofall processing activities. In addition to cutting your regu-latory compliance burden, these self-documentingworksheets clearly communicate the steps used toassign loan scores so sharing, explaining and modifyingthe analysis is a snap.

DEPLOY ANALYSIS AND REPORTS TO THE FRONT LINESInsightful's portfolio solutions put answers at your orga-nization's fingertips. From empowering business users toperform their own analysis to publishing Web-readyreports or scoring accounts with automated processes,Insightful supports numerous deployment options thatscale up to the heaviest demands. With Insightful, yourdecision-makers can take action quickly and decisivelyfor increased productivity, reduced costs, and bettercompetitive position.

EXPERTISE YOU CAN BANK ONThe pressure to make better and faster decisions is driv-ing financial leaders to invest in more sophisticated andmore powerful analytic applications. Insightful is one ofthe world's most sought after data analysis partners forits expertise in analytical solutions that improve portfolioperformance and control risk in all facets of the financialservices value chain.

Our Professional Services team is renowned for bothanalytical experience and project management skill.Whether we go shoulder-to-shoulder to train your staffand assist with initial implementation, or you want us tolead your analysis efforts, we know banking require-ments and define the ideal solution, providing exactlywhat is required.

ABOUT INSIGHTFUL CORPORATIONInsightful Corporation (NASDAQ: IFUL) provides enter-prises with scalable data analysis solutions that drivebetter decisions faster by revealing patterns, trends andrelationships. The company is a leading supplier of soft-ware and services for statistical data analysis, datamining and knowledge access. Insightful productsinclude S-PLUS®, Insightful Miner, StatServer®, S-PLUSAnalytic Server®, and InFact®.

For more information visit http://www.insightful.com or send e-mail to info@insightful.com

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Insightful Loan Portfolio Valuation Solution

Software Applications

Insightful Miner Visual Data Analysis WorkbenchS-PLUS® data analysis and programming engineS+FinMetrics for advanced time series analysis (optional)S+NuOPT for advanced optimization strategies (optional)

Fast-start Training and ImplementationServices

On site or Web-based interactive training in the development and deployment of models for portfolio analysisComprehensive loan-level scoring pipeline tailored to your environment, including:

One data source connectionOne data preparation and transformation pipelineOne existing model translationOne account-level scoring and rollup pipeline

Fast Facts

Over 16 years of leadership in software and services for statistical data analysis, data mining and knowledge accessOver 70% of the largest banks, lenders and credit card companies rely on Insightful software and services to gain intelligence from their stores of numbers and text with analytic applications tailored to their specific business needs

Copyright © 2003 Insightful Corporation. All rights reserved. Printed in the United States of America. This data sheet is for informational purposes only. INSIGHTFUL MAKES NO WARRANTIES, EXPRESS ORIMPLIED, IN THIS SUMMARY. S-PLUS, StatServer, S-PLUS Analytic Server, InFact and S+Wavelets are registered trademarks and S+ArrayAnalyzer, S+FinMetrics, S+NuOPT and S+SeqTrial are trademarks ofInsightful Corporation. All product names mentioned herein may be trademarks or registered trademarks of their respective companies.

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