Did you know the Credit Analysis tools in FINPACK can be customized to meet the unique credit underwriting and analysis needs of your institution?
We know each financial institution has its own unique credit culture—FINPACK allows for the customization of its Credit Analysis tools including Collateral Analysis, Credit Decision Scorecards, Risk Reports, and Presentations. This customization is available for both agricultural and commercial files. Let’s take a look at the options available for some of these tools.
Collateral Analysis
FINPACK’s Collateral Analysis allows a global analysis of all customer collateral; alternatively, individual collateral groupings can be analyzed on their own and then totaled. This allows for the calculation of loan to value for individual collateral groups, while still providing total loan to value, total collateral coverage margin and total dollars of collateral margin for the customer. For example, chattels can be analyzed as a single group, then real estate mortgage (REM) #1 and the attached property, and REM #2 with its attached property. Each of these three groups would list particulars of the related loans and collateral, with everything being totaled as well.
Additionally, standard discount/advance rates can be set for your institution. These standard rates can also be overridden as needed for individual analysis purposes. And you are in control of what assets are included in the analysis. Individual, detailed asset listings can be included or excluded from the analysis and different advance rates can be utilized for each to match your credit analysis standards.
Risk Reports
FINPACK’s Risk Rating tool is meant to be customized, allowing you to replicate your current risk rating model in the software. Data from throughout FINPACK can be utilized in the risk rating, whether it comes from a data source (balance sheet, tax form, income statement), financial analysis (C & I Business Analysis, CRE Analysis, Sch. F Cash to Accrual Analysis, Earned Net Worth Analysis, Global Cash Flow Analysis, FINAN Financial Analysis), a projection (monthly or annual cash flow projection), or the collateral analysis. Custom, external criteria can also be analyzed. This could be a credit score, character score, or similar. Users are able to have as many risk rating models as needed. A common example would be an agricultural and commercial risk rating model. This could be taken a step further to analyze specific business types if needed. For example, C & I versus CRE.
In our next post, we’ll look at how Presentations and Credit Decision Scorecards can be customized.
Getting Started
If you are not currently using these customized tools in FINPACK, get started today! One of your team members can create the customized templates for the software. Or, better yet, let FINPACK Support assist! Our support team is always happy to help build the Risk Report, Credit Decision Scorecard, and Presentation templates needed for your institution to meet your credit underwriting needs. As always, this FINPACK support feature is always available to our customers at no charge. Connect with our Support Team today to get started at support@FINPACK.com or at (800) 234-1111. We are ready to help.
Pauline Van Nurden is currently the Associate Director for the FINPACK Team. She has been with the team since 2017 as an Economist.
Prior to joining the FINPACK Team, she worked as a lender. This provides her valuable industry experience and knowledge in her work with FINPACK. Pauline holds a Master’s Degree in Agricultural Education and Bachelor’s Degree in Applied Economics, both from the University of Minnesota.