(Archive) GOLD 11.4 November 2011
Risk on Outstanding Loans
Outstanding Loan Recap Enhancements with New Analysis Dashboard
The Outstanding Loan Recap (Action Code (OL) “All Open (Active) Loans For Which This Borrower is Responsible) has always been your one-stop shop for viewing the lending relationships you have with a member (tracked by SSN), showing your member’s loan balances (including related accounts which the member co-signs). With this release, we really beefed up this Recap, adding more account data, including contingent liability, credit score, collateral information, service income, and more! In addition, we’ve redesigned the Recap to give it a cleaner design and added the option to generate and print a report of the data.
We’ve also added a new Outstanding Loan Recap Dashboard (accessed via F9-Analysis) that lets you analyze this member’s lending relationship, via six different analyses, proving detailed breakdown of the member’s credit scores (with graphing), contingent liability details, delinquency information, and more.
Lenders and Managers will love the new Dashboard, which can also be accessed via the Outstanding Risk Analysis described below.
New Loan Concentration Analysis Dashboard
Hand in hand with the updated Outstanding Loan Recap is the new Loan Concentration Analysis Dashboard. Management will love the simple design of this dashboard (access via the new MNMGMT #18-Loan Concentration Analysis) that summarizes and lists all members according to outstanding loan balance.
Managers can even filter loans to view the only the credit union or the investor owned portions. From this new Dashboard, you can drill down to access both the dashboards mentioned above, as well as the last 12 credit scores (including graphing) of an individual member.
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Refer to the “Outstanding Loan Recap: Managing Your Concentration Risk ” brochure available on CU*BASE Reference Page for details. |
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Details for all related screens will be available via CU*BASE GOLD Online Help with the release. |
Packaging Loans to Be Sold: A Concentration Risk Tool
This new tool is more than just a feature credit unions can use when considering if they would like to participate or sell a portion of their loan portfolio; this feature also allows management to segment a portion of their loan portfolio for concentration risk analysis, including viewing servicing income and yield analysis.
This feature is available via a new option on the Management Menu (MNMGMT) #24-Package Loans to be Sold. After filtering loans by several selectors (including business unit, credit score and loan to value figures), you can then select some of the resulting loans to view more detailed data on the group, such as servicing income and yield percentage. From here, you can select the part of the loans you wish to participate out to create the “package” for sale or participation to another financial institution.
Where the Loan Concentration Analysis described above helps you look at individual members and the risk they represent when they have very large balances or a lot of loan relationships, the Package Loans for Sale tool can also be used to look at groups of similar loan types – to help you find baskets that might have too many eggs.
Also coming soon...CEOs attending the CEO Strategies event the week of November 7-11 will be previewing a new tool that takes the best of both this tool and the Loan Concentration Analysis dashboard to create a Portfolio Risk Analysis. We’ll be taking the selection filters from the Package tool and adding them to the Concentration Risk tool, plus adding a mechanism so you can enter your capital amount for more comprehensive analyses that can help you defend those baskets to your third party commentators. Watch for more information about this additional tool in the coming months.
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Refer to the “Packaging Loans for Sale-Managing Your Concentration Risk ” brochure available on CU*BASE Reference Page for details. |
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Details for all related screens will be available via CU*BASE GOLD Online Help with the release. |
Collateral Enhancements
Expansion for Mortgages
A new Combined Loan-to-Value (CTLV) field has been added to the Collateral Maintenance and Inquiry screens, assisting with real estate loans that have a first or second position lien from another lender. In fact, several new fields, including “Other debt amount” and description (used to calculate CLTV), “Policy #,” and “Flood Zone” have been added here and to the collateral file.
While we were at it, we also updated the Insurance version of the Collateral Information Report (MNPRTE #7) and added “Other Debt” and “CLTV %” columns to the Loan to Value Report (MNRPTE #18). These reports now also include Medallion information, explained in more detail below.
New Collateral Definition Type for Medallion Loans
The second collateral enhancement involves the addition of a new Collateral Definition Type, Medallion, specifically designed for use with when taxi cabs (the license to drive them) are used as collateral. Even if you don’t plan on using the Medallion collateral type, this enhancement may be of interest to you since it may have additional applications for other multi-collateral lending formats in the future.
This new Medallion collateral type (configured via a new option on the Loan Products menu (MNCNFB) #13- Medallion Collateral Config) allows you to tie multiple Medallions to a single collateral record. You could potentially add 99 Medallions to a single collateral record, and then add or remove Medallions from the collateral to automatically adjust the Total Loan to Value. That way if a borrowing member sold a Medallion, you do not have to redo the loan or collateral.
Included is also a special “Re-Price Medallions” feature (accessed via the Loan Products menu (MNCNFB) #14-Re-price Medallion Collateral, similar to the “Update Investment Market Price” tool for investments. With this tool, the collateral value can be periodically adjusted and the system automatically updates all the Medallion collateral records, recalculating LTV ratios.
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Details for all related screens will be available via CU*BASE GOLD Online Help with the release. |
Participation Loan Inquiry
A new Participation Loan Indicator (and button) on the Loan Account Inquiry screen gives direct access to an updated Participation Loan Analysis screen, providing easier access to analyzing your Participation Loan portfolio. This enhanced Analysis screen (also accessed via the Participation Loan menu (MNPART) #1-Add/Maintain Participation Loan, then select a loan, then F15-Analysis) now includes updated verbiage that is easier to understand, as well as the Investor Name.
If you select an Investor from this Analysis screen you now can view additional contact information (title and email), for three contacts, instead of one, as was previously available. This contact information is collected in the updated Investor Configuration (Participation Lending menu (MNPART) #27-Configure Investor Configuration). The Investor configuration screen includes a new F12-Comments feature which takes you to a new screen where you can type comments about this investor.
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Refer to any of the four Participation Lending booklets available under “P” on CU*BASE Reference Page for details. |
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Details for all related screens will be available via CU*BASE GOLD Online Help with the release. |
Reporting “High Credit Amount” to Credit Bureau
Previous to this release, CU*BASE reported the “loan disbursement limit” to the Credit Bureau for the “High Credit Amount or Disbursement Limit” field. This was because CU*BASE did not store the high credit amount. With this release the logic for reporting will change to now report the “High Credit Amount.”
Reporting on open end loans will change to include the larger of the Current Balance or newly calculated High Credit Amount. Since members can draw on these loans at any time, the High Credit Amount will be determined using the resulting balance from a transaction. Closed end loans continue to report the larger of the Current Balance, Disbursement Limit, or Disbursed Amount, which will now be saved as the High Credit Amount.
The initial value for the High Balance Amount will be calculated using the last twelve months of transaction data. A one-time flood will place this amount in the existing ACTBL1 field of MEMTRL3. Additionally with this release, when an account is closed, data from the MEMTRLx files will be move to three new files: MEMTRL1CL, MEMTRL2CL and MEMTRL3CL.
Miscellaneous
· From the 11.4 Release - A fix has been included with the release to correct an issue involving application info not saving. Now, while completing a loan application, pressing any function key (except F7-Cancel) will save the information entered on the screen. For example, if you’ve entered the member’s employment information and select F5-Underwriting Comments, the system will save the changes before continuing to the Underwriting Comments screen.