Our Process

Implementation Stage

Once you become a client of Platinum Risk Advisors, we work with you to create three (3) Excel-based data extract download templates:

1) Prepayment calculations
2) Charge-off data, and
3) A loan data file

These downloads will come from your core data processing system and all you will need to do is upload them into our website. Other than periodically going over the subjective adjustments to the ALL calculations your work is done!

We segment the data fields into those you already have stored in your data processing system versus additional data fields that will need to be added and will allow you to gain the most out of the PRA standard loan management reports.

Data fields almost certainly stored in your loan subsidiary ledger system:

  • Customer / member number
  • Loan number
  • Commercial vs. consumer loan
  • Loan officer responsibility code
  • Customer / member number
  • Term loan vs. line of credit
  • Customer zip code
  • Date loan originated
  • Maturity date of loan
  • Original amount of loan
  • Current interest rate
  • Unpaid balance of loan at month
  • Additional amount available to draw on the loan
  • Whether loan is on nonaccrual status or not
  • Delinquency aging category
  • Was the loan acquired through participation?
  • Fee income collected during the current year
  • Interest income collected during the current year

To properly stress test and provide support for your subjective adjustments to CECL, you will also need the following data

Additional Data fields to add to your loan subsidiary ledger:

  • Loan types using our 46 loan types
  • Fixed rate (enter a F) vs. variable rate loan (enter a V)
  • For commercial loans, the current risk rating
  • For consumer loans, the FICO credit score when the loan was originated or if a newer one was obtained use that
  • If the loan is a troubled debt restructured loan enter a T
  • For commercial loans:
  • Fair market value of collateral pledged against the loan (on an undiscounted basis)
  • Total cash flow available to service debt obligations (annual basis)
  • Total principal and interest due to other lenders
  • Principal and interest debt obligations due to the bank (credit union)
  • For consumer loans, the debt to income ratio
  • For commercial construction loans for 1 to 4 family residential real estate – Name of the Master Builder

Without these fields it is nearly impossible to produce proper segmentation
or perform the stress testing the regulators demand.

In our platform, these additoinal data fields can easily be added to your loan subsidiary system. There are two phases:

1) how to capture the additional fields for existing loans, and
2) how to create a process to add or update the additional fields for new and renewing loans, respectively

  • Charge-off Data Download

    We will guide you through a process that makes the monthly efforts relatively easy.

  • Monthly Reports

    Each month after closing you will prepare a monthly file package of the three download files.

    Within our secure platform, you will upload each of them according to a set process we will provide to you then you can send us an email informing us you have uploaded each of the three. After that, we will takeover to create the PRA Standard Reports. We will then notify you normally within one business day that your reports are ready for you to download as PDFs that you can then email to leaders in your organization and / or print.

  • Quarterly Actuarial Reports

    For the quarterly actuarial reports, PRA’s actuarial consultants at ARM will perform their processing, testing, and validation of our CECL and other ALL calculations, plus the reasonableness of the major CECL assumptions. Within 7 business days, PRA will send you an email stating that the actuarial validation report is ready to download as a PDF and be printed.

QUESTIONS? FEEL FREE TO CONTACT US

319.202.4365

contact@CECLadvisors.com

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