Value Creation Institute recently announced through its affiliate, Buckley Management Advisors, LLC, that its patent pending system for asset valuation, ValueScout, was found to be 96 to 98 percent accurate in prediction of loan default when tested with actual data. The test was performed in order to observe ValueScout’s ability to predict the outcome of residential mortgage loans. According to Buckley Management Advisors, the

test was conducted using loan servicing data with a previously known outcome, and within the data set, 963 loan records were used to define the model while 4,338 were used to validate it. Loans were stratified based on location, property type, and loan type, and records were then randomly selected within the stratifications so the sample reflected the entire data set. The model was then applied to the reserve data and the results compared to the actual outcome. Buckley Management says the current lending environment has elevated the importance of the management and evaluation of delinquent and defaulted loans. The company also stated that lenders and loan servicers must proactively evaluate portfolios for warning signs of default. “We provide a unique tool to our clients with precision capabilities not seen in the financial industry today,” said Anthony Lemus, senior partner at Value Creation Institute. “The tools we have patented and deployed have already proven themselves in the aerospace and medical device industry, where accurate reliable predictions for product performance are a mandate for business success.”