The Universal Assumptions option will only appear if your security profile has the Manage Assumptions permission. In this section, depending on your bank's setup, you can find up to four different fields to configure. You can modify how the Swap Fee is amortized, the period in which the Financial Statement is calculated, enable the option to assign a specific Funding Package to a product, and assign Servicing Expense Type.


In this Article


Amortizing Swap Fees

The 'Amortizing Swap Fees' field will only appear if you have the Swaps Package Setting enabled by PrecisionLender. This option will be set to No by default. Changing it to Yes will amortize the Swap Fee over the life of the loan, instead of applying it to the first month of the loan.


Allow Funding Packages on Products

This field will only appear if you have the Funding Package Override Setting enabled by PrecisionLender. Funding Packages are usually tied to a region by default. Enabling this option gives the possibility to assign a specific Funding Package at the product level eliminating the extra step of having to change it in every new opportunity.

If you do not see this option but would like to use it, please reach out to Support.


Make sure there is no product currently using an override funding package before disabling this option.


Fixed Rate Lock Forward Premium Rates

If this box is selected, you will have the option to define your own custom rate locks.

If this box is not checked, it is assumed the you will use the current PrecisionLender methodology for forward premium rates. This checkbox will be de-selected by default.

Select the Add New Duration button to add a new rate lock duration. The system will automatically populate with a 30 day lock.

From here you can enter the Loan Term and Premium Rate information that applies. If you need to add additional tiers, select the Add Term Tier button.

Repeat this process for as many durations needed for your organization.


It is important to note that if you are using the custom forward premium rates feature, be sure to add all Rate Lock Durations that are applicable to your bank in Universal Assumptions since these are bank-level values that will be applicable across all applicable products. If a Rate Lock Duration value is not configured in Universal Assumptions, it will not be displayed in the Fixed Rate Lock dropdown while pricing an opportunity.


Financial Statement Horizon

The 'Financial Statement Horizon' will be set to Loan Life by default, but it can be changed to 1 year, 5 years or 10 years depending on your requirements. Once updated, the new calculation will only be applied to the Financial Statement after the pricing date is changed, either forward or backward.




This option does not impact non-credit revenue activity based fees.


Credit Duration Calculation Methodology

If you select a 'Financial Statement Horizon' other than Loan Life, an additional field will populate in the Universal Assumptions section called 'Credit Duration Calculation Methodology'. This will determine the Credit Duration used for capital calculations. 

The 'Credit Duration Calculation Methodology' will be set to Contractual Remaining Maturity by default. You may choose to use Remaining Maturity, which uses the remaining maturity of the loan counted from the calculation month. 



Servicing Expense Type

The 'Servicing Expense Type' will be set to Product by default, but it can be changed to Product and Region depending on your requirements. Once updated, servicing channels can be enabled at the regional level.


When set to Product and Region, the Servicing Expenses for both the Product and Region will be used. Servicing Expenses are inputs in the Non-Interest Expense calculation, so you can view the sum of the Product and Region Servicing Expenses on the Financial Statements tab. 


Regulatory Capital Calculations

This setting allows you to select whether or not to use the original maturity in regulatory capital by checking or unchecking the box to the right of the arrow, below.