Consumer Loan Portfolio Risk Analysis and Collateral Valuation
Twenty Twenty Analytics starts with raw data extracted from your core system and/or third parties tracking your loan portfolio. We accept data from multiple sources and in various file formats. We offer a full suite of services including FICO Scoring, Collateral Valuation and Multi-Dimensional Portfolio Analysis. These services are offered individually or altogether.
- FICO Scoring and FICO Migration Analysis: We aim to take the stress out of your FICO score update by accepting information with no specific format or layout requirements, eliminating duplicates and providing data back in a clean, easy to use format.
- Collateral Valuation: Using information that is readily at hand, the Twenty Twenty real estate model has been effective in providing values on 100% of properties by using current data provided by the National Association of Realtors. Additionally, you can obtain current collateral values for cars, motorcycles, RVs, boats, ATV, watercrafts, heavy trucks, machinery and other collateral. Commercial collateral valuation is calculated by using current information and by considering changes in the market and interest rate environment.
- Concentration Risk Assessment: Because each credit union is unique, it is not always easy to understand where your real concentrations of risk exist within your portfolio. Twenty Twenty’s model measures current risk and ties together areas of concentration, so that you are able to clearly measure, evaluate and set limits that are specific to you and your membership base. Portfolio Stress Analysis examines how changes in the collateral values or other economic factors could alter collateral exposure or future performance.
- Allowance for Loan Loss Validation: Loan allowance validation combines the results of the credit-union-specific collateral valuation and loan paper risk analysis to measure the potential losses and compare them with your allowance account. Loan allowance validation also is used in conjunction with Twenty Twenty’s portfolio stress analysis, so your management can see how changes in economic events affect not only the quality of the loans but how those changes could translate to the bottom line.
- Current Expected Credit Loss (CECL) Implementation: The new CECL model will require that your credit union calculate losses over the expected life of your loan portfolio. Twenty Twenty Analytics applies both vintage (static pool) analysis and probability of default methodology to help you:
- Compile the necessary data required for the calculation,
- Quantify your expected credit losses, and;
- Understand how changes in the economic environment may impact credit losses