Setting Up Funding Packages

Funding Packages are the set of funding assumptions that will be used to price a loan.  Once a Funding Package has been set up, any number of regions can be set to use that Funding Package.

With Funding Packages, you are able to:

• Update one Funding Package and have those changes apply to all regions that use that Funding Package
• Have multiple Funding Packages per region, and allow the lender to choose which Funding Package to use on a per loan basis.
• This functionality is only available with certain modules, and may be an added cost. Please contact us if you are interested in turning this on.
• Set a funding package at the product level for commercial loan and deposit products, which will override the funding package at the regional level.

Adding and Editing Funding Packages

You can add or edit Funding Packages on the Regions & Users pane of the Administration Section. Click the "New" button next to "Funding Packages" to create a new Funding Package, or click the name of the Funding Package you would like to edit to open the Funding Package Assumptions screen. Note that you'll only see the Funding Packages on this screen if you have the "Manage Regions" permission as part of your security profile.

• Name
  • What this Funding Package will be called throughout PrecisionLender
•  Enabled
  • When checked, this Funding Package will be available for use
• Funding Curve Family
  • Use the Funding Curve Family filter to choose the type of curve that you'd like to use.
  • Funding Curve Options
• Funding Curve
  • After selecting a Funding Curve Family, you have the option to select the daily curve or one of several synthetic funding curves from the Funding Curve list
  • If the Funding Curve Family is 'Custom', you will be able to select from a list of your bank's available Custom Funding Curves. 
• Infer Curve Type Based on Family
  • By default, this box will be checked. When this setting is checked, standard funding curves with certain families (and synthetic curves in general) get classified as Raw, and the rest are All-In. When this setting is unchecked, the curve type is pulled based on what is listed in the database.

• Funding Curve Interpolation
  • Interpolation Methods
• Liquidity Adjustment Interpolation
  • Allows you to apply your funding curve's interpolation method to your liquidity adjustments 
• Lookup Type
  • This field identifies whether current, standard look up methodology, or the lookup functionality is being used.
    • Default  - The default value. This is the current, standard lookup methodology.
    • Loan Term - The lookup functionality used by the financial institution for their funding curve assignment. The default employs strip funding as the standard lookup methodology. The Loan Term option uses a specific rate on a point on a curve, eliminating the need for strip funding. The interpolation choice of stepwise aligns with the loan term lookup.
• Funding Curve Adjustments
  • Allows you to add adjustments, to the entire curve or for specific durations
  • Adjustments apply to all points on the curve less than or equal to the specified duration but greater than the previous duration
• Liquidity Adjustments
  • Setting Up Liquidity Adjustments
  • Recommended Liquidity Curve

 Note: You can view our funding package recommendations here.

After setting up a Funding Package, you'll need to add it to a region in order for the Funding Package to be available when new opportunities are being priced.

In the Administration section, select the region you would like to add this Funding Package to and then click the edit button in the upper left hand corner. You will then have the ability to change the Funding Package for this region to any enabled Funding Package. For information on how to edit funding package assumptions see: The Region Edit Screen