FAQ’s from Webinar: Are you effectively analyzing your loan application data?
March 2017

This year we will be hosting monthly webinars on various analytics topics. These webinars will be in-depth, educational, and overall well worth your time both from a product perspective and an industry perspective. 

The first of these webinars was on February 2nd titled “are you effectively analyzing your loan application data?“. This article addresses the questions and answers from the webinar.

Can I create my own custom categories?
Yes, with the help of Visible Equity support. Contact support to get custom categories setup.

 

In what category do you place counteroffers?
Great question. We currently place them in “Other”, but are considering adding a standard status called “In-process”.

 

What parameters are used to define another institution as a peer?
Comparable asset size and proximity.

 

Are LTVs being updated in Visible Equity?

Yes, for loan analytics, but for applications we are typically looking at a static original LTV.

 

How do you run a decision time in Visible Equity exactly?
We will subtract the application date for from the funding or decision date. Contact support for more details.

 

Are we able to look at approved and denied applications within fair lending?
Yes, if you subscribe to both Fair Lending and Application Analytics.

 

Do you factor in delinquency results with the ‘what-if’ scenarios?
Not directly, we use a calculation called expected loss, which takes into account loss given default and probability of default to account for expected delinquencies and charge-offs.

 

Slide min. was 580 but average was 530?
The minimum means minimum to be included in the approved section. On the sample slide the average approved was 742. The average denied was the 530.

 

How is the turnaround time by branch measured?
Select branch as the stratification option. We will subtract the application date for from the funding or decision date. Contact support for more details.

 

What other variables can be tweaked in what-if scenarios?
Credit Score, Loan to-value, Debt-to-income, Probability of Default, Expected Return Rate

 

Is the turnaround measured by application date vs approval date?
Yes.

 

How does Visible Equity handle applications that are re-decisioned? Will the time-to-decision be determined by initial decision date or subsequent decision date?
It will be overall (original application date to funding date). Support can also probably help you setup a metric from subsequent decision depending on data availability.

 

Can Visible Equity calculate the number of pending applications in a pipeline?
Yes.

 

Does application analytics talk with loan analytics portion of Visible Equity? (Can we track an application to after it is booked.)
Yes.

 

Can we access this webinar recording if were not currently an application analytics customer?
Yes

 

What must be purchased to get the ‘what-if’ analyzer?
Application Analytics.

 

The PD did not change is that accurate?
In real life it will depend on the magnitude and types of shocks applied. (Keep in mind that the demo uses fake data that sometimes provides nonsensical results.)

 

In the what-if scenarios can you drill down into the results? Specifically, can I see the factors that go into the actual expected return vs. the scenario’s expected return?

No, but a great idea that we will try and incorporate.

 

Do the charge-off numbers used come from our actual institutions charge-off rates? Does the 1 Year Gross Revenue assume any prepayments?
Not directly, we use a calculation called expected loss, which takes into account loss given default and probability of default to account for expected delinquencies and charge-offs. No, expected prepayments are not incorporated.

 

Does ‘What-if” reporting only come with Application Analytics?
Yes.

 

Can you analyze loan officers?
Yes.

 

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