PrecisionLender calculates several production metrics for Opportunities, Accounts, and Relationships. Among them are Gross Funding, Loan Commitment, and Net Funding.
Definitions
Loan Commitment: The maximum retained amount that could be drawn over the lifetime of the account or accounts
Gross Funding: The retained amount of the account or accounts that will be drawn at closing
Net Funding:
- The retained amount of the account or accounts that will be drawn at closing, taking into account payoff and renewal balances and conversions
- The net loan growth impact (new business)
How They Are Calculated
These numbers are calculated separately for Commercial Loan Accounts, Scenarios and Opportunities, Active Loan Accounts from the Relationship Awareness feed, and Relationships.
Retained Percentage for each loan is the percentage remaining after entered Participations, or: 100% - Entered Participation %
Commercial Loan Account
The Commercial Loan Account values are calculated based on the Payment Type, with a special case for the send half of conversion loans:
- Loan Commitment: The Commitment/Amount entered by the lender in the Opportunity screen x Retained Percentage
- Gross Funding:
- Letter of Credit: $0
- Line of Credit: Initial Balance x Retained Percentage
- Scheduled Draws: The draw amount from the first month x Retained Percentage
- Everything Else: The entered Amount (Loan Commitment) x Retained Percentage
- Net Funding:
- Conversion Loan (Perm): Gross Funding - Payoff/Renewals Amount - Retained Final Balance of Primary Loan
- All Others: Gross Funding - Payoff/Renewals Amount
Scenario and Opportunity
The Scenario values are calculated by summing the accounts in that scenario. The Opportunity logic is the same, summing the contents of the pipeline scenario:
- Loan Commitment: Sum (from each account) of
- Conversion Loan Pair: Maximum of the two loans' Commitments
- All Others: Commitment from account
- Gross Funding: Sum (from each account) of
- Conversion Loan Pair: Gross Funding of Primary Loan
- All Others: Gross Funding of account
- Net Funding: Sum (from each account) of
- Conversion Loan Pair: Net Funding from Primary Loan
- All Others: Net Funding from account
Active Loan Account (Relationship Awareness)
Active loan accounts do not have values for funding, as they have already been funded. The Loan Commitment is provided as part of the feed (Amount). We do not currently apply Participations to these accounts.
Relationship (Relationship Awareness)
We calculate and display Relationships from a number of different perspectives by summing the values from the relevant Opportunities or Active Accounts ( examples include "All Open Opportunities", "All Open Active Accounts", "All Closed Won Opportunities").