The MST Loan Loss Analyzer (LLA) is your financial institution’s reliable, repeatable process for determining your allowance, under the current incurred loss standard and as you transition to CECL. The LLA satisfies regulatory requirements while eliminating the demands and concerns associated with manual processes.
Compile and manage loan and loss data for current and historical periods.
Test CECL methodologies while maintaining a compliant incurred loss model.
Calculate the relationship between economic variables and loan level data to support forecasts.
Choose your model or models. Manage loss rate methods, roll-rate methods, probability-of-default methods, or methods using vintage or other cohorts.
Verify the accuracy of the calculation so auditors and regulators can see exactly what you did and why you did it.
Eliminate errors inherent in manual data entry and Excel spreadsheets so you can be confident that your calculations are accurate.
Interface with your existing data systems, seamlessly gather data, and calculate the allowance according to your chosen methodology or methodologies.
Produce reports that serve as management tools to make sound business decisions and maximize profitability.
Consolidate data sources and life of loan management
Segment portfolio by characteristics such as Vintage, Product, Risk, Geography
Perform loss analysis by any number of models; Vintage, Cohort, Migration, DCF, PD/LGD
Support and make objective and quantified adjustments for current conditions and forecasts
Correlate economic data to loan level data in support of forecasts (Virtual Economist)
Reserve individual loans using Collateral, DCF, or Fair Market valuations
Test alternate methodologies in a dual environment (especially helpful in transition to CECL)
Client-Defined Reports, Report Writer, Standard Reports with details, ALLL, CECL, Concentrations, ASU 2010-20, Call Reports, Data Applicable reports, Problem Loan Reporting and Specific Impairments Reporting
Test capital adequacy according to institution-selected stress scenarios and apply the resulting impact to capital levels
Calculate additional reserves, evaluate remaining discount adequacy and create call reports and footnote disclosures
Transparency and auditability throughout the process
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