iprice LoanEDGE Quick Start Guide

Transcription

1 iprice LoanEDGE Quick Start Guide Do You Have an Account? If you know you already have a user account for LoanEDGE, proceed to the next section Web Site. Otherwise, you will need to create a user account. Create a Username A Farin client care or sales rep will provide you with a web link to use to self-register for a username for LoanEDGE. When you get to that page, enter all values, and choose We are a LoanEDGE client and need a new account in the Reason selection box. We get a notification and verify your registration before enabling your account. When we enable your account, you will get an with a reminder of the web page link. Web Site At Farin.com, click on Client Care Log-in (up by Search box), and select LoanEDGE in the submenu. On the subsequent page you will see a set of links for LoanEDGE that allow you to start LoanEDGE (Start Page link), access reference topics, view training materials, and access account management tools for username and password management. Username Doesn t Work If you forget your username use the Lookup My Username link on the LoanEDGE client care page to have your username sent to your address. Password Doesn t Work Use the Reset Password link on the LoanEDGE client care page to have a temporary password sent to your address. You will probably want to change that password. To do so use the Account Management link in the upper right of the LoanEDGE start page (where you see your loans and relationships). Then use the Change Password link that shows up to create a different password. You can also change your password by going directly to the client care site at Login here with your current or temporary password and go to the Account Management page. Farin LoanEDGE Quick Start Page 1 of 7

2 Browser and Silverlight The application uses the Microsoft Silverlight plugin within your browser. If you have never run a Silverlight application from the web, you will be asked to download the Siverlight plugin the first time you use the LoanEDGE link. Some IT policies prevent the downloading of plugins on corporate owned machines. In that case you will either have to get an exception to the policy or use a home machine that can download plugins. The Silverlight plugin is not compatible with the Google Chrome browser (as of September 2015). Compatible browsers include Internet Explorer, Firefox, and Safari. Recommended Configuration There are certain older combinations of PC operating systems and browsers that do not work well with LoanEDGE; including interaction problems between Internet Explorer versions 6/7 and some versions of Windows. These problems are worse on a laptop or netbook with a small screen. Therefore we recommend the following minimum requirements for running the application. 1. Microsoft Windows 7, 8, or 10, or Macintosh OS X operating system. 2. Minimum screen resolution of 1024x768. If that is not possible, be sure to maximize the browser or run the browser in full screen mode. You can also use the browser zoom capabilities to reduce display size to less than 100% 3. Use Firefox, or Internet Explorer version 10 or later browser if at all possible (and if permitted on institution owned equipment). Safari on Windows or Mac OS X is also compatible. Internet Explorer Compatibility Mode There are known issues when using LoanEDGE with Internet Explorer versions 9 or 10 that are solved by running IE in compatibility mode. This is described in the LoanEDGE Get Started and Quick Reference page on the client care site. You can also search Farin.com with the phrase internet explorer error. Farin LoanEDGE Quick Start Page 2 of 7

3 Using LoanEDGE You must login to the application each session even if you have used the Account Management login for password management. Use the login link or login button on the first screen that loads. The first time you login, you will know everything is working if you see a page that looks like this and has iprice LoanEDGE for Your Institution Name in the upper right title: If you see something else, contact us as there may be an issue with your username s permissions within our network. Online Help Clicking on the Overview tab in the upper left will bring up a list of help topics. Much of what is mentioned in this guide is repeated there. Modeling a Scenario Any loan you analyze must be part of a customer relationship. So in order to model any customer proposal you must first create a relationship for each proposal. Once a relationship exists, you then add specific loan and deposit products to the relationship. The new relationship process is pretty simple. 1. From the Home page, click on the "Create New Relationship" link in the Tasks list upper right. Farin LoanEDGE Quick Start Page 3 of 7

4 2. Enter a customer name, or something that describes the relationship. 3. The group selection box will be disabled unless your institution is setup with lending groups. 4. Click Add, and then after the relationships list finishes loading, you will see the new scenario on your home page. Adding a Product 1. The Select an Account window appears immediately after you create a relationship. (In an existing relationship, use the Add Account button in the upper left.) 2. The Select Account window is an outline of the chart of accounts for your institution. Click on the plus next to the chart headings to open each category. Click here to open a category 3. When you see the account that resembles the product needed by the scenario, highlight it then use the Select button in the lower right to add it to the relationship. The product will be added, and its characteristics will appear in the relationship window: Farin LoanEDGE Quick Start Page 4 of 7

5 Editing When a product appears in the main window, you can begin editing - initially by supplying a rate, reprice rate if necessary, and amounts. Loan products also require selection of a credit grade or the manual entry of a credit loss value if no credit grades are available for that product. Changes are automatically saved - there is no need to look for a save button because there isn't one. When you finish working with the products in a relationship, just close the window with the red close icon in the upper right. Fields Offer Rate - Enter the current rate or initial rate if a teaser or variable rate product. Enter nominal rate, not APY. Reprice Rate - For variable or teaser rate products, enter the expected rate at the first reprice or reset. With a variable rate credit card or typical line of credit, this is likely going to be the same as the offer rate (don't try to anticipate rate movements because the profit model has a mechanism for interest rate risk effects). Farin LoanEDGE Quick Start Page 5 of 7

6 Amount - For typical term loan accounts or term deposits this is the initial balance. For non maturity products (revolving credit, credit card, line of credit) enter the expected average balance of the loan. For non maturity deposits (MMDA, Checking) also enter the expected average balance. Commitment Amount - This field will appear on revolving credit or line of credit loans, and should indicate the total credit commitment on this loan, which of course should be greater than the expected average balance. If you are modeling a credit account without any specific credit limit, just enter the same value as the balance amount. The commitment amount can be used in fee calculations if for example there is a commitment fee based on the total credit limit. Fees/Expenses - The fee and expense lists may already contain entries, which come from the chart of accounts characteristics which are setup and maintained by the administrators. For example it is typical to have a servicing cost assumption in the chart record that will show up in the expenses list. You can add items to either list, but you cannot change or remove expense items setup by an administrator. Changes are made by clicking on the edit button next to an item, which brings up an edit screen for that item. From there you change the description, amount, or select a different fee/expense type. To add new ones, use the Insert New link found under the list. This will create a new entry in the list then use the edit button to fill in the particulars. Amounts for dollar based methods (e.g. Initial $) are entered in whole dollar amounts. A $750 initial application fee would be entered as Rates are entered in decimal format, 1.5% is entered simply as Structure Most of the characteristics you see in this section are set as a result of the product chosen and cannot be changed. However you can change the term of a term loan, or the amortization length of a balloon loan. For example you may be considering a 3 year balloon loan in this relationship, but are also considering 4 or 5 year balloon structures and thus you might change the maturity of the balloon loan. If the chart account you selected was not what you intended - for example if you intended to model an amortizing loan, but chose a revolving line of credit product, you should remove this product from the relationship and then add the correct chart account. Risk - The credit risk expense for a prospective loan is determined by either the risk rating selected in the Credit Risk selection box, or by specifying a credit loss rate in the Credit Risk Value field. If credit ratings are setup by administrators for this particular account type, you will see the list of ratings in the selection box, and the selection you make will fill the Credit Risk Value. If there are no credit ratings assigned to the account, you just manually enter a credit loss rate. For accounts with risk ratings and only if your institution's administrator allows it, you can override a credit rating by selecting [manual edit] in the selection box, which will enable the Credit Risk Value field. Results and Details As you make changes to product amounts and characteristics, you will see the profitability results change automatically. The product profitability results are listed at the bottom of the product view while the relationship profitability results appear in the lower left blue box in the relationship view. The primary profit measure used, ROE, is easy to see and is a fairly simple calculation: Loan ROE = (Horizon Income$ / Allocated Capital$) / Horizon in Years However the components of the horizon income statement can involve many details. To see the breakdown of income, you can generate an Excel spreadsheet that shows all of the inputs with the details on all four of the profitability measures we use; spread to benchmark, market value, FTP income and horizon income. Farin LoanEDGE Quick Start Page 6 of 7

7 To generate a details spreadsheet, use the Details link either in the upper right of the product view or the lower left of the relationship view. From that link you will be provided with a file Save As dialog box and after choosing a location, and Excel file with the details is saved to your PC. Details Documented For a description of each of the components of the profit measures, we have a detailed PDF document that you can download by finding the Profit Model Details link on the LoanEDGE Get Started and Quick Reference page on our client care web site. Tutorials and Assistance From the LoanEDGE client care page, you will see links to tutorials and webinars that can be used to learn the system in more detail. For some of the resources you will be asked to use your LoanEDGE username and password to gain acces. Farin LoanEDGE Quick Start Page 7 of 7