Tuesday, November 20, 2007

Compass: Analytic firm buys competitor

There was some consolidation in the high-tech world of mortgage analytics today, according to an item posted on the National Mortgage News Daily Briefing. Compass Analytics LLC, San Francisco, has purchased Tuttle Risk Management Services from LION Inc. Both Compass and Tuttle are in the business of putting values on mortgage-related assets, including those that are used as collateral for mortgage-backed securities.

Tuttle was a well respected name in this business and has been a player here for a long time, though it has been bounced around a bit from owner to owner.

Compass will now square off against New York-based Mortgage Industry Advisory Corp. (where some principals of Compass reportedly once worked), and a few other firms that specialize in creating models that account for revenues and values for these often exotic assets.

This could be a lucrative time for companies in this space, as Wall Street firms work to avoid ending up holding assets related to subprime mortgages on their balance sheets--and ultimately writing down their values.

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