Construction Stress Analytics©

CRE Stress Analytics©
Construction Stress Analytics© is a recent addition to our suite of risk management tools.  It is robust software that quickly handles all construction and land development loan stress testing needs. Using loan data extracted from your, core processor, loan system or other data sources, Construction Stress Analytics© will do the analysis for you. Implementing a highly accurate method of estimating loan interest payments for the life of a project, along with Loan to Value ratios and Loan Payment Dates, Construction Stress Analytics© provides your on-site users with stress ratings you set based on interest reserve capacity to cover the interest payments, as well as the ability of the project to generate cash flows sufficient to repay the entire debt.

Once a loan’s data is input, the user can stress test it by varying numerous factors, including absorption rate, construction delays, interest rate, real estate value, and even fallout of presold units. With Construction Stress Analytics©, you won’t have to guess about the effects of the very things that happen on almost every construction loan.

Construction Stress Analytics© gives the user the ability to stress test different sectors of your construction/development loan portfolio. When you are aware that values in a sector have changed, use Construction Stress Analytics© to see how those changes affect your portfolio! Print out the easy to use reports to show the results in a format your Board will appreciate.

Benefits of Construction Stress Analytics:
Construction Stress Analytics© is easy to learn and use.  Users set the level of detail for loan, guarantor, and collateral information.

Data
Automated Data Import from core processing system
Import from any source using delimited or spreadsheet files
Data always retained until modified
Subsequent updates change only information that has changed, everything else is held
Automatic Archive function
Quick and easy manual update of loan information if necessary
Import everything at once or separate imports for loan data, collateral data, borrower/guarantor data

Security
Up to 10 levels of user authorizations plus Administrator level
Lock down within the SQL data base
Use internal security levels and access authorizations as another layer

Stress Testing
Stress each loan with actual data, not generic area wide assumptions
Use actual loan performance data
One button stressing in a matter of seconds
Isolate loans by sector, area or region, loan type, lender, construction/land-development, and many others
Discover concentration issues including borrower/guarantor and exposure to capital
Track historical stress migrations
Set stress parameters globally by sector or individually
Stress test loans any time you want with immediate results, the software is on your PC or network
Stress portfolios or individual loans
Set output for automatic credit alerts
Virtually unlimited loan count capacity in the SQL data base


Output
Multiple reports available for single loans, loan sectors, or the entire portfolio
Full export capability into spreadsheet or other format
Reports available by lender, branch, sector, size, location, and many, many more areas
Easy to read presentation in graphs, charts and itemized detail when needed
Print stress results by loan, by sector, or by the entire portfolio.
Understand risk to capital
View everything on the screen or print
Current and stressed Interest Reserve Capacity
Current and stressed LTV
Current and stressed Loan Payout date
Estimate of collateral value (primary and secondary) at current and stressed levels
Stress Rating at current and stressed levels

Compliance
Designed to comply with all current issued regulatory guidance
Continual updates included
Outputs designed
Ability to create new reports

Variables Stressed
Committed Amount
Interest Rate
Collateral Value
Paydown per Unit
Project Length (timing monthly advances)
Absorption Rate
Presold Units
Sales Start Date

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 Construction 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. Real data is used to stress your loans. Not generalized “peer data” or “national averages”, but your financial institution’s real data.

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.

Stress Test a loan during underwriting and continuously for the life of the loan.