In our previous posts on customizing FINPACK Credit Analysis, we examined how to build a Credit Decision Scorecard model that best fits your needs, and we looked at options for customizing Loan Presentation templates. In this post, we’ll focus on customizing Collateral Analysis and Risk Ratings.
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.
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. This FINPACK support feature is included in your system-wide license and comes at no extra charge. Connect with our Support Team today to get started at support@FINPACK.com or at (800) 234-1111. We are ready to help.
Connect with FINPACK
Don’t forget to follow FINPACK on Facebook, Twitter and Instagram, or connect with us on LinkedIn, and be sure to subscribe to FINPACK News email updates.
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.
David Maguire helps Ag and Commercial lenders across the country understand the value of using FINPACK for credit analysis and loan management. David has worked in the marketing, training and education fields in Minnesota, Ireland and Germany.