PDF The IRT/LEMAC Project is a collective effort to create increased transparency and a reliable system of risk assessment in the area of asset-backed securities (ABS).
Created by The Epicurus Group, the project has successfully influenced the establishment of key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
IRT is an acronym for Integrated Regulatory Technologies. The purpose of IRT is to provide software to all originators of debt obligations that may be securitized, collect data about the originations and the steps taken to create the debt obligation.
LEMAC is an acronym for Loan Evaluation Mortgage Analysis Corp. The purpose of LEMAC is to provide a unique numbering system to protect the data of borrowers, analyze it, provide consumers of debt with the risk ranking specific to their individual debt obligation and report the information about each specific risk ranking to issuers and ratings agencies so that investors may access it.
Our unique risk assessment process will provide asset-level data to prospective investors while protecting the privacy interests of borrowers. We use established Federal guidelines as our benchmark for our assessment, but view it in a specific way that gives a clear identification of risk.
The process is intended to serve for the life of the debt obligation. Investors who may intend to sell their ABS in the secondary market will be able to rely upon our system for an accurate ranking of risk to future buyers, and the prospective buyer may rely upon us for that information.
Economists, risk managers, investors and companies deeply involved in the ABS markets have expressed their belief that this system will establish the basis for a restoration of confidence in the investor community and a renewed flow of funds to lenders.
Please read some Background on our purpose.
