Market Insights for Rates

Overview

This skill provides insights and coaching on how to set rates/spreads based on how a loan is priced relative to similar loans in the market.

In This Article

• Skill Installation
• Skill Configuration
• Skill Usage

Skill Installation

Follow these steps to install and turn on the skill for an audience:

1. Log in to the Andi Skills Manager through the PrecisionLender application.
2. Navigate to the Configure tab at the top.
3. Search for “Market Insights for Rates” in the search bar, and select it.
4. From the left menu, select Audiences under the Setup section.
5. Click Setup Audience to open a list of available audiences, and select the audience you’d like to turn the skill on for (e.g. “Everyone”).
6. For “Choose skill version”, select the latest version (if not already selected). Configure the skill as desired (see the Skill Configuration section of this article for more details) and click Next.
7. Click Complete Setup & Enable Skill to turn it on for that audience.

Skill Configuration

There are several options to configure the skill to behave as is best suited for your organization.  To configure a skill, follow these steps:

1. Log in to the Andi Skills Manager through the PrecisionLender application.
2. Navigate to the Configure tab at the top.
3. Search for “Market Insights for Rates” in the search bar, and select it.
4. From the left menu, select and audience under the Setup > Audiences section (if you need to configure a new audience, see the Skill Installation section of this article)
5. Click the dropdown under General Configuration.
6. Once you’ve made the desired changes, click Enable Changes.

The available configurations:

• Maximum Spread Change: The maximum amount of change in rate/spread that Andi will recommend.
• Header Text: Header text displayed above the coaching in Andi.
• Andi Message: The message Andi will display.

Skill Usage

When the skill is enabled for an audience, the members of that audience will receive coaching from Andi when they are pricing loans.  You can expect to receive insights on how your rates/spreads compare to the market for most loans, with a few exceptions: 

• Market Insights does not currently provide insights for SBA loans.
• Market Insights does not currently provide insights for tax exempt loans.
• Market Insights does not provide insights for loans for which it doesn’t have sufficient data.

For all other loans, the skill behaves as follows:

• If no rate/spread has been set yet, no insight will be provided as Market Insights does not yet know where your loan stands relative to similar loans.
• If the loan is below the 25^th percentile, Andi will recommend getting to the 25^th
• If the loan is above the 75^th percentile, no insight will be provided as the loan is already achieving a strong rate/spread relative to similar loans.
• Otherwise, coach to the next quartile (50^th or 75^th percentile). If the next quartile is more than the Maximum Spread Change away, recommend increasing by the Maximum Spread Change   If the current loan is within 5 bps of the 50^th percentile, skip that quartile and recommend the 75^th percentile instead.