CRE Stress Analytics©

CRE Stress Analytics is a recent addition to our suite of risk management tools. It is robust software that quickly handles all commercial loan stress testing needs. We work with staff to develop the loan extracts, import the data, and then train the model operators in its use. No more one loan at a time analysis, analyze the entire portfolio or sector at a time in a few quick key strokes. Deliver output to other formats or print and deliver to loan committee, ALCO, the CFO and CEO, the Board of Directors, or others as needed. The easy to read graphics along with tabular support make CRE Stress Analytics the solution for you.

A lender with concentrations in Commercial Real Estate (CRE) should perform portfolio-level stress tests or sensitivity analysis to quantify the impact of changing economic conditions on asset quality, earnings, and capital.

CRE Stress Analytics is a dynamic tool used to stress income producing commercial real estate portfolios to determine loan performance under stressed conditions and determine concentration exposures by virtually any yardstick the lender wishes to utilize.

The model uses dynamic variables to stress:
           Interest Rate
           Vacancy Rate
           Capitalization Rate
           Operating Expense
           Collateral Value

Individual loans, multiple loans, sectors or the entire portfolio can be stressed at once and
can be stratified by any of the categories loaded into the model. Segmenting the portfolio can be completed using each user’s own portfolio segments.

Two important factors in stress or sensitivity analysis are Debt Service Coverage (DSC) ratios and Loan to Value (LTV) ratios. The CRE Stress Analytics model creates stress ratings based on LTV and DSC ratios for past, current and future conditions.

Risk due to concentration of credit is addressed in CRE Stress Analytics. View concentrations for any variable: geographic, collateral, type, guarantor, etc.

Benefits of CRE Stress Analytics:

The CRE Stress Analytics is easy to learn and use.  Users set the level of detail for loan, guarantor, and collateral information.

Spreadsheets are gone. No more wasted time and upkeep. No more manual data entry.

Stress Ratings for loans are completed automatically through user defined parameters.

Export records to other systems.

Concentration Risk is easily monitored and measured against capital and overall exposure

Satisfy the regulatory requirements for stress and sensitivity analysis.

Empirical evidence is provided by CRE Stress Analytics© of potential risks in the portfolio allowing monitoring of these potential problem loans and mitigation of the risk in advance of loan performance issues.

Report output is available in standardized or customized reporting formats.

View results for the current position, under moderate or severe stress and compared to original underwriting position.

User defined portfolio segmentation.

Analyze for concentration levels

Low cost solution that is fed from standard core system extracts.

Easy extract importation to load the data allow quick updates and ongoing monitoring.

Risk Stress a loan during underwriting and continual for the life of the loan.

For more information contact:
Randall Corwin
RCorwin@FIMACSolutions.com
1-877-322-1880 Ext. 739
3300 East First Avenue, Suite 280
Denver, CO 80206