Commercial Credit Loss Mitigator

Commercial Credit Loss Mitigator forecasts credit exposure at both the borrower and portfolio level during and post the COVID-19 pandemic economy.

Common Challenges

  • Estimating the impact of the pandemic crisis on your existing loan portfolio is a real concern.
  • Fear of credit losses and lack of bandwidth to analyze your portfolio’s probability of default, particularly with the ever-changing
    economic conditions, present significant challenges.
  • It can be a struggle to drill into the forward-looking credit loss at the borrower’s level.
  • Resources are already stretched to manage an increased flow of loan applications due to CARES Act, revealing further need for an efficient, consistent, and objective portfolio evaluation process.

 

How Commercial Credit Loss Mitigator Helps

Proactive Risk Management – Commercial Credit Loss Mitigator helps clients manage their risk portfolio and lower credit losses while factoring in the current economic environment:

  • Provides line of sight into risk vulnerabilities at the borrower and portfolio level.
  • Is calibrated to the current economic environment, which is especially crucial during uncertain times.
  • Allows lenders to identify deteriorating credits and implement proactive measures to minimize losses through early warning detection.
  • Provides a consistent, transparent, and objective loan management process mandated by management, auditors, regulators, and investors.
  • Reduces cost and improves timeliness of the loan review process.
  • Confidence in PayNet score accuracy, despite economic shifts, based on objective analysis of your portfolio.

 

Features include:

Quarterly complete dataset of the entire portfolio that includes each borrower’s eight-quarter PD forecast, loan performance, and condition summary.

PDs that are powered by the calibration of
– Latest local and national economic conditions.
– Loan performance and condition of each of your borrowers.
– Loan performance and condition experienced by other lenders with your borrower.

Access through multiple channels, including online and datasets.

Configurable segmentation through client-specific rules based on client’s risk-tolerance specifications.

Approximation of probabilities of default based on geography, industry, and other factors, delivering a PD with a high level of confidence.

Provision of additional account management advantages and data points.

Plus, retro swap analysis, a proof-of-concept assessment that estimates the profit and loss impact of using PayNet
MasterScore® v2 to make credit decisions.

For more information, contact us.