Concentration risk generally denotes the risk arising from an uneven distribution of funds in product lines, business relationships or geographical regions which are capable of generating large losses.

The estimated fair market value of an asset that is being used as loan collateral.

A static pool is comprised of loans originated with the same underwriting criteria during the same month, quarter, or year.

Historically, new loans tend to perform better than older loans. Static Pool Analysis, therefore, does not include new loans entering the pool. Instead the analysis looks at the pool of loans originated in the same time period. This type of analysis is useful in order to reliably predict expected future performance given the same underwriting criteria

Static pool analysis can be used to evaluate just about any type of loan pool performance, regardless of the underlying characteristics of the loans in the pool.

Delinquency is defined as an individual or corporation with a contractual obligation to make payments against a loan, but fail to make payments on time. Charge-Off is a debt that is deemed uncollectible and is subsequently classified as 'bad debt expense' and removed from the books.

Visible Equity utilizes a propriety regression model that aggregates the influence of several loan, borrower, and collateral variables to determine the probability of a borrower defaulting or in a loan being charged-off. Within the same model you can analyze the trends and characteristics of your portfolios delinquencies and charge-offs

Credit scores of individuals are used to evaluate the risk of lending money to a consumer. Financial Institutions use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. As a credit score decreases the inherit risk of a borrower defaulting increases. This risk can be minimized by analyzing the common characteristics of borrowers who have defaulted on their loans in the past and identifying early on those same characteristics in other borrowers.

Additionally, this same type of analysis should be done on LTV's. LTV's can pose a similar risk once the borrower begins to become delinquent. Given that a loan has been guaranteed by equity in the collateral, as the LTV increases the likelihood of obtaining the equity in the collateral decreases. Visible Equity provides a platform to identify common characteristics of credit scores and LTV's that can expose an institution to unwanted loss or risk of loss.

A migration is how a metric has changed over time, typically from origination to current. Visible Equity gives you the ability to see how migrations are changing that affect your risk of loss or increase your profitability. Common migrations include LTV, Credit Score, Probability of delinquency, DSCR, etc.

Visible Equity's system is available anytime, anywhere. Whether you need to quickly print off a report for a meeting, have an unexpected examiner visit you, or need to get something done after dinner, Visible Equity's Analytics can quickly be loaded to meet your needs.

A SOC 1 Report is a report on Controls at a Service Organization which reflect internal controls over financial reporting. The SOC1 Report was previously considered a SAS70 report but falls under the SSAE 16 guidance.
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With Visible Equity, your data is uploaded to a secure facility that we constantly monitor and test.

Visible Equity’s loan portfolio optimizer aids financial executives in forming an optimal loan portfolio. Financial Institutions often find difficulty in optimizing their portfolio with the right mix of product offerings. Small business loans offer an appealing net interest margin, but substantially higher credit risk than low margin auto loans. Mortgage loan origination's are often accompanied by attractive fees, but represent the possibility of increased interest rate risk.

Using a proprietary set of algorithms, Visible Equity’s Loan Portfolio Optimizer has a simple objective; provide guidance on the most profitable loan portfolio mix while minimizing a portfolio’s most threatening risks, credit and interest rate risk.

The ALLL is an accounting estimate of probable but unconfirmed asset impairment that has occurred in the loan portfolio. FAS 114 provides guidance on loss estimation for loans that are identified for individual evaluation. FAS 5 provides guidance on loss estimation for groups of loans.

Visible Equity’s ALLL module allows users to estimate parts of their allowance for loan and lease loss by

1. Creating groups to review for individual impairment (prior FAS 114) and calculating
   the impaired amount (using the fair value method) and
2. Segmenting the unimpaired portfolio by homogeneous groups (prior FAS 5) and
   using historical losses and qualitative factors calculating the unimpaired amount.

Stress tests and sensitivity analyses quantify the impact of changing economic conditions on asset quality, revenue, and expected losses. Stress testing generally focuses on certain segments of an institution’s loan portfolio, taking into consideration the economic environment and the institution’s policies and procedures

Visible Equity's stress testing tool can be used in a number of ways from analyzing a group of loans to analyzing an entire portfolio. This analysis provides institutions the insight needed to observe the effects of changing economic factors on their loan portfolio.

In addition to loan portfolio stress testing, Visible Equity's tools include a sophisticated CRE stress test. The CRE stress tests provide an institution the ability to shock the system with changes in different factors such as: collateral value, income, interest rates, expenses, vacancy rates, recovery rate, etc.