Consumer loan products are used as the basis of generating a Rate Table within a Consumer Loan Rate Sheet.

 

In this Article

 

The Consumer Loan Product Edit Screen

 

Toolbar Header Region Tabs

Edit

  • The "Edit" button will allow you to change the settings of the product.

Save

  • After you click the "Edit" button, the "Save" button is how you save any changes you have made to the product.
  • If you leave the screen without saving, any changes you have made since the last save will be lost.

Print

  • The "Print" button allows you to print off the settings of this product.
  • The "Print" button is not visible while editing.

Close

  • The "Close" button will leave the product and take you back to the Administration Section.
  • Make sure that you save your work before closing if you would like to keep the changes you have made.

 

Product Configurations & Defaults 

General

 

Product Enabled

When checked, this product will be available to lenders for pricing.

Maximum APR
Maximum APR for this product type.
FFIEC / HMDA Lien Status
  • Not Applicable
  • Secured by a First Lien - 1.5% Spread Limit
  • Secured by a First Lien and Eligible for Small Creditor Exemption - 3.5% Spread Limit
  • Secured by a Junior Lien - 3.5% Spread Limit
Base Target ROE
In PrecisionLender the Target ROE is one of the main ways to guide lenders. Technically speaking, PrecisionLender calculates a risk adjusted return on risk adjusted capital (RAROC), however, for simplicity we refer to it as ROE.
Adjusted Target ROE
Target Return that takes into account adjustments made at the product level, typically based on risk ratings.
Available Regions
  • Regions for which these settings are active are signified with a check next to the region name.
  • See Customizing Products by Region
    • Split Out Region
      • Allows you to choose regions to separate from this group of regions so they can have separate assumptions.
    • Collapse Into Region
      • Allows you to collapse this group of regions into another group of regions that you select.
      • Only available if the Full Regionality and Advanced Funding module has been licensed.


Policies & Defaults

 

Policies Defaults
Allowable Payment Types
  • Amortizing
  • Letter of Credit
  • LOC
  • SinglePay / Interest Only
Allowable Rate Types
  • Checking the box will make that rate type available for this product.
  • Available Rate Types
    • Fixed
    • Floating
    • Adjustable

 


Credit Configurations & Assumptions

 

Risk Rating Collateral Options
PrecisionLender allows for borrower risk rating categories to be mirrored after your internal risk rating scale with as few or as many required.

 

Financial Configurations & Assumptions

 

Capital / Annual Loss

Typically the Credit Capital and Annual Loss assumptions are based on the output of the credit migration analysis performed in consultation with PrecisionLender.

Operational & Market Risk Capital Allocation
  • Represents the capital necessary to hold against operational and market risk that exist no matter who your borrower is.
  • Entered as a percentage of the loan balance plus a percentage of revenue.
Use Net Interest Income as Revenue in Operational Risk Capital Calculations
  • If you do not include capital in funding, you may use Net Interest Income as revenue, instead of Gross Revenue, in Operational Risk Capital Calculations.
  • This option is enabled by default when creating new Consumer Loan products.
Absolute Minimum Capital Allocation
  • Can also be set by Risk Rating within the Risk Ratings area.
  • If set at Product and Risk Rating levels, the maximum of the two minimums will be used in computations by the math engine.
Absolute Minimum Annual Loss
  • Can also be set by Risk Rating within the Risk Ratings area.
  • If set at the Product and Risk Rating levels, the maximum of the two minimums will be used in computations by the math engine.

 

Origination and Servicing Channels 

 

Other

Relationship Awareness Defaults

 

Minimum Function Maturity - FTP

  • When a loan is approaching maturity, some values can be overstated or understated due to the short term of the calculations.
  • Any value entered here will override the 1-month default.

Minimum Functional Maturity - Strategic

  • When a loan is approaching maturity, some values can be overstated or understated due to the short term of the calculations.
  • Any value entered here will override the defaults of:
    • 12 months for LOCs and Draws
    • 36 months for Amortizing and Single Pay

Origination Fees

  • This is used to set different origination fee defaults for loans coming through Relationship Awareness than the defaults for loans being priced.
  • By checking the "Origination Fees" box you can enter a new Relationship Awareness-only default value.

 

History

Here is the history of changes made to the product

 

  • The History section at the bottom list all of the dates and times that changes were made to the product.
  • By clicking on a date and time you can see the setting of the product that was saved at that date and time.
  • This History section is not visible when the product is in Edit mode.

 

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