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.
Unleash Unlimited real-time “What-If” capabilities on your portfolio.
To estimate potential losses at the loan level due to changing economic conditions.
Performs portfolio level stress testing for each type of loan at the bank, using: