Loan Participations, CECL, Stress Testing, Loan Modeling for Banks and Credit Unions

Santa Fe, NM  |   (505) 670-7670  |  info@deepfutureanalytics.com

PRICE OPTIMIZATION

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Incorporate Forward Looking
Metrics into Your Price Matrix

Risk Pricing based on past history is common. Most institutions consider only Product, Term, LTV, and Credit Rating. But, with the onset of CECL, more institutions are starting to build pricing models using more advanced data. For example, an institution with a strong mix of agricultural loans would benefit greatly with the addition of forecasted commodity prices in their pricing model. Agriculture loans correlate well with commodity prices and thus any changes in commodities will have an impact on Ag loan volume.

DFA's Price Optimization Tool allows you to create custom scenarios which blend:
✓ Product, Term, LTV, and Credit Rating
✓ DFA's Library of Economic Variables
✓ User's Uploaded Scenarios

As a result of this level of customization, the accuracy of your risk forecast is at its highest possible level. Consequently, after this data flows seamlessly into your custom Price Optimization Report you'll be able to obtain optimal risk adjusted margins on your loans.