OmniLytics Credit Stress Testing Analytics

Provide forward-looking credit loss estimates on a loan-by-loan basis

Given the current economic conditions, is your financial institution aware of what will happen if your borrowers’ incomes go down 15%? How about if collateral values drop 15%? What if both happen at once? By implementing loan level stress testing, you can have that information at your fingertips.

Stress testing may have been put on the back burner a few years ago, but with these trying economic times it is once again at the forefront. A prudent response to what is currently happening in the economy is to run stress tests and know what you’re looking at if certain changes in the market do happen. NXTsoft can work with your staff to develop the loan extracts, import the data, and then train the model operators in its use and then our Credit Stress Analytics does the rest. Our robust solution meets all CRE stress testing requirements and provides you with the ability to quickly see a report that outlines the projected performance of one loan, your complete portfolio, or slice and dice with our filters to any group of loans you create.

No more painstaking one-loan-at-a-time analysis. In a few keystrokes, you can analyze your entire portfolio or segment it by commonalities such as sector, borrower, zip code, loan size or loan officer. You input stress factors such as changes in vacancy rate, cap rate and net operating income. After stressing the loans, Credit Stress Analytics plots your loss given default on each loan.

Now is the time to run stress tests and know what you’re looking at if certain changes in the market do happen. The difference could be that you see the potential issues with your borrowers and loans prior to their other creditors, and you are thus better able to manage through the situation.

Bring Stress Testing to Your Everyday Routine

Unleash Unlimited real-time “What-If” capabilities on your portfolio.

• Allows easy and instant manipulation of stress testing inputs
• Easily allows reverse stress testing on any user-defined segment of loans
• Instantly stresses groups of loans individually based on your inputs
• Filter by any user-entered or calculated field in the model
• Trend Analysis - See how loans or portfolios migrate over time
• Underwriting Stress Calculator - Know before you write the loan how it will perform under stress
• Horizon Forecast - Allows for the ability to stress over time, up to 20 quarters in the future (CRE + C&I)

Reveal Exposure and Concentration by Sector

• NXTsoft offers modules for CRE, Construction and C&I to cover your entire portfolio.
• A credit officer or risk manager can stress an existing loan portfolio or stress new loans before they originate.
• NXTsoft’s stress testing tools provide a huge time savings over current practices.

Benefits

• Utilize the power of your loan data to optimize loss provisioning
• Easy entry of stress testing inputs
• Instantly stresses loan groupings based on user-defined inputs
• Filter by any user-defined or calculated field in the model
• Trend Analysis - Migration of loans or portfolios over time
• Stress test out to 20 quarters in the future
• Stress at underwriting & ongoing
• See the future of loan performance
• Monte Carlo Simulation module available
• Conduct reverse stress testing
• Generate summary reports for the entire portfolio, any subgroup and individual loans - over 50 different reports
• Export reports and data to Excel, Word, PDF or Crystal Reports for additional analysis

Transaction Stress Testing

To estimate potential losses at the loan level due to changing economic conditions.

• Gauges vulnerability to default and loss
• Fosters early problem loan identification
• Assists in strategic decision making
• Strengthens decisions about key loans

Enterprise Level Stress Testing

Performs portfolio level stress testing for each type of loan at the bank, using:

• pertinent stress factors
• Produces useful reports summarizing the results
• Provides key data needed for interest rate risk and liquidity stress tests