DebtX Enhances DXMark™

DebtX Launches New Version of Commercial Real Estate Loan Valuation Tool

BOSTON,  October 26, 2005

DebtX, one of the nation’s largest loan sale advisors for commercial debt, today announced the release of DXMark 2.0, a powerful, more robust version of its innovative loan valuation tool for Commercial Real Estate (CRE) loan portfolios.

DXMark 2.0 integrates innovative technology that estimates Conditional Prepayment Rates (CPR) for individual loans and applies them iteratively based upon each loan’s characteristics and theoretical value before CPR application. This compares with the approach of applying CPRs at the portfolio level without regard to variations in the characteristics of individual loans.

In a portfolio without contractual prepayment penalties, for example, DXMark will apply lower CPRs to loans with below-market interest rates and higher CPRs to loans with above-market interest rates rather than an ‘average’ CPR across the entire portfolio. This approach better reflects observed borrower behavior and provides greater overall accuracy and deeper insight into specific loans within a portfolio.

In addition, DXMark 2.0 now accommodates virtually any type of specialized or customized interest rate accruals, such as step rates or interest-only rates based on conditional or future events. The expanded modeling capabilities provide maximum flexibility to review and analyze CRE loan portfolios.

DXMark enables financial institutions to generate an objective assessment of their CRE loan portfolios based on actual market data from secondary loan sales transacted at DebtX, the largest online exchange for CRE loans.

“The enhancements to DXMark will produce more accurate assessments of loan values within a CRE portfolio,” said DebtX CEO Kingsley Greenland. “By providing a closer approximation of the actual market value of loans, DXMark can help financial institutions make smarter decisions about their entire portfolio. The industry’s most effective CRE valuation tool has just become much more extensible and valuable.”

The launch of DXMark 2.0 follows recent agreements between DebtX and Freddie Mac and the Federal Home Loan Bank of Boston to use DXMark for upcoming CRE loan valuations.

About DXMark
DXMark is the only CRE loan-pricing model using competitively executed, secondary loan sale data to price loans.

The DXMark pricing model is calibrated by storing the dollar prices and traded yields on loans sold to third parties in the secondary market. Captured in the database is information on each loan’s Financial Factors (e.g., Interest Rate, Amortization) and credit Factors (e.g., LTV, DSCR) as well as current market conditions (e.g., Treasury Yields, CMBS BBB yields) at the time of the transaction. DebtX regresses the stored data and derives statically relevant beta coefficients for each characteristic of a loan. These beta coefficients are applied when pricing loans, resulting in an estimate of their market value at any point in time.

DXMark valuations are expressed in terms of cents on the dollar. For a loan with a $10.1 million net present value and a $10.0 million face value, the DXMark is 101 cents on the dollar.

About DebtX
DebtX is one of the nation’s leading full-service loan sale advisors for commercial debt. DebtX helps commercial banks, insurance companies, investment banks, government agencies and other institutions increase profitability and reduce risk by offering comprehensive loan sale advisory services that create liquidity in an institution’s loan portfolio. DebtX operates the largest online marketplace of buyers and sellers of commercial debt and offers a variety of innovative information services. These include: DXMark, the first objective valuation of commercial real estate portfolios based on actual secondary market loan sales; and DXOpen, the direct access channel to DebtX’s online marketplace for those institutions that want additional flexibility to initiate and manage loan sales. For information, contact, 617-531-3400 or visit www.debtx.com.