Loan Portfolio Analytics Platform

The Platinum Risk Advisors (PRA) outsourced CECL compliance solution uses as a foundation a platform called Loan Portfolio Analytics which provides banks and credit unions with the ultimate tool for assisting them in the management and measurement of risk, growth, and profitability within their loan portfolios. Our monthly deliverables to you include:

  • Allowance for loan losses (“ALL”) calculations compliant with Generally Accepted Accounting Principles(“GAAP”) using 3 widely accepted methods under CECL as well as your existing methodology.
  • Management reports allowing you to segment your loan portfolio by the type and adequacy of the collateral, borrower’s ability to repay their debt obligations,  location of real estate pledged as collateral allowing you to measure geographic concentrations.
  • Reports that allow you to see the growth efforts by each loan officer month to month, measure changes in the weighted average yields and risk ratings  / FICO credit scores of their assigned portfolio, and view the weighted average risk ratings, weighted average yields, number of loans, and unpaid balances of loans by collateral type for each  loan officer’s loan portfolio.  See examples of the CECL calculations and the reports discussed above under A Better Solution.

We will be adding stress testing capabilities within 90 days.

With our solution there is NO software to buy or maintain

Once setup, simply upload your monthly loan data into our secure Amazon hosted platform and you will begin the journey
to evaluate your loan portfolio from a view never seen before by receiving:

Monthly Comprehensive Management Reports

PRA allows you to uncover hidden trends, assess risk, and measure the profitability and growth within your loan portfolio. You now will have the information you need to strategically and objectively manage your loan portfolio and the granularity of the real performance of individual loan officers.

Monthly Compliant and Auditable CECL Reports

PRA develops approved ALL calculations using three GAAP compliant CECL methods: Vintage, Probability of Default / Severity of Loss (PD/SL), and Migration Analysis, PLUS your existing methodology allowing an institution to effectively implement and plan for the impact of CECL.

Quarterly Third-Party Validation of Macro-Economic & Other CECL Assumptions

PRA has a strategic partnership with the independent actuarial firm, Actuarial Risk Management (“ARM”), stating that they have validated the major CECL assumptions. Since its diligence over 12 years ago, ARM has meet the strict vetting from many of the nation’s Top 30 accounting firms, including BDO USA, LLP and members of the global BDO network. Its 50+ actuarial resource pool includes many senior consultants well-versed in the practical aspects of projecting loss and risks then designing cost effective risk mitigation techniques.

Semi-Annual Report on the Volatility of your CECL Accrual & Benchmarking to Peers

PRA has ARM producing a look under the hood of your loan portfolio that no other vendor has even considered at this point. For the first time ever, PRA can deliver periodic perspective of your loan portfolio’s performance under future stresses in the broader economic markets and their influences on loan default rates. These views into the future serve to help you understand what might happen within your loan portfolio when certain economic conditions or changes in real estate markets occur.

With the PRA suite of loan management reports, and the periodic views into the future, your senior management and the Board of Directors will gain a partner who delivers not just the “what is my CECL accrual” but more importantly allows you to focus on the “why’s.”

Is the risk in my loan portfolio increasing or decreasing? Are the yields we are obtaining on loans consummate with the level of risk we are assuming? Which loan officers are performing at the highest level? Which ones are not carrying their weight or assuming too much risk? Why has the changes in underwriting not produced less defaults? Why are my loans so sensitive to …? With PRA on your side it will be quickly very evident why the subjective adjustments are set the way they are (or better yet, why they are not something else). In the end, PRA guarantees you a new perspective in loan management, so you make prudent decisions in a consistent, safe and sound manner.

The PRA Loan Portfolio Analytics Platform allows your institution’s auditors and regulators the ease of verify the calculations and numbers in the ALL calculations and management reports.

We leverage the hosting power of Amazon’s Web Services (AWS) for reliability, scalability, security, and accessibility of our platform. We cannot understate the critical nature of data security with any vendor, hence why PRA has a data protocol that elevates the privacy of your information as well as the private information of their customers / members. AWS makes available its Service Organization Controls (SOC) Reports that demonstrate, via an independent third-party examination, how AWS achieves key compliance controls and objectives. Any vendor not capable of submitting a hosting company’s SOC Reports simply makes your data vulnerable. Upon request we will provide you with a copy of these audit control reports to fully satisfy your vendor management requirements.

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Quickly identify trends

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Quickly make strategic adjustments

Maximize Your CECL Transition

Our team has experience with Lending , Risk Management, Accounting issues related to the banking and credit union industries and preparing the allowance for loan losses, and actuarial science.

We have the know how you need to make the transition to the CECL accounting standard.

QUESTIONS? FEEL FREE TO CONTACT US

1-866-480-7475

contact@CECLadvisors.com

© 2018 Platinum Risk Advisors. All rights reserved. Current Expected Credit Loss (CECL)Advisory Experts, Loan Loss Analytics Software