60 days. According to the infomercials that’s the amount of time it will take me to get rock hard abs. It’s also the typical amount of time a borrower can be past due on their loan before it’s counted as delinquent. Visible Equity has your delinquency analysis covered with 5 standard delinquency reports to help you better understand those loans. Let’s review each of those reports in addition to discussing potential real-world applications of that data.
1. Delinquency Ratios
This report displays your institution’s delinquency ratios by category, GL category, type description etc. Visible Equity will divide delinquent balances by total balances for each of the stratifications. Delinquency ratios are the go-to report for identifying which segment of your business is producing the highest proportions of delinquent loans.
2. Delinquency Volumes
Have you ever wondered how your C paper will stack up compared to your A+ paper in terms of loan performance? You can stratify the delinquency volume report by credit score to look at total delinquent volumes by credit grade. As in all VE reports, you can also set up a double stratification option to see delinquencies by credit grade within a specific category, sub-category, type code etc. This will help you review loan performance not only by credit grade, but also loan type.
3. Delinquency Relative Impact
If your credit cards are responsible for 10% of your overall portfolio balance, but they make up 20% of your delinquent balance, their delinquency relative impact will be 2. The delinquency relative impact report is dividing a specific category’s delinquent balance percentage by that same category’s overall balance percentage. The key number to look for in this report is 1 because any category greater than 1 will be responsible for an outsized number of delinquencies in your portfolio.
4. Delinquency Aging Table
The go-to report to analyze your pre-delinquent loans. This report will show you total balances on loans that are both pre-delinquent (1-59 days past due) and delinquent (60-359 days past due). For example, you may find that many mortgages are consistently 1-29 days past due, but always seem to pay at the end of the month. Or you might find that a larger percentage of your consumer loans are 30-59 days past due this month, and you might have to brace for a spike in delinquencies next month.
5. Delinquency Trends
This isn’t one of our prebuilt delinquency reports. You’ll have to select the trends report and you will see four delinquent show options. I think it’s interesting to look at delinquency count or balance and try to identify certain months or quarters that have higher delinquencies.
You can also create a delinquency aging trend table in Loans Beta to better understand trends and patterns for your pre-delinquent loans. Don’t hesitate to contact our support team if you’re interested in building out one of these custom reports.