What s New in FARIN Foresight Version through

Transcription

1 What s New in FARIN Foresight Version through All accounts for Banks, now have Basel III Risk Weight settings on the General tab of the Characteristics screen. (Page 2) 2. Forecast Caps & Floors and Prepay/Decay Factor: have been added to the Account Audit Report All Data. (Page 2) 3. On the characteristics screen, the line item for These characteristics override any existing instruments will be highlighted if the box is checked. (Page 3) 4. NAICS Report Types are now available for Custom Reports. (Page 4) 5. New choice available for Amortize Premium/Accrete Discount Until: on the Characteristics screen. (Page 5) 6. New Type of File Description available to import a User Defined Prepayment table. (Page 6) 7. Prepay/Decay Factor: can now be input to reflect seasonality. (Page 7) 8. Users can import new chart items from a data file. (Page 8) 9. Current Year Earnings can now be transferred to the Capital Closing account in a forecast. (Page 9) 10. New Standard Reports screen with a more intuitive layout and design. (Pages 10-13) 11. New option to run Market Value with Non-Maturing Deposits reported at Fixed Premiums (Credit Unions). (Page 14) 12. New Copy Pricing Rate button on the Calculate Offset tab of the Market Value Account Assumptions screen. (Page 15) 13. Enhanced Error Checking during data import on the Read Files screen. (Page 16) 14. Data imported to accounts designated as Inactive will show as Unused. (Page 17) 15. Procedures to Correct Unused Records (Page 18)

2 Basel III Risk Weight Basel III Risk Weight can now be set on the General tab of the Characteristics screen. Users must update this field with the appropriate settings. New Fields have been added to the Account Audit Report Three new fields have been added to the Account Audit Report All Data. Now, the Prepay/Decay Factor:, Forecast Floor and Forecast Cap will be displayed. Page 2 of 18

3 These characteristics override any existing instruments characteristic will be highlighted if checked The reason for this change is due to the significant impact that it can have on Intertest Bearing accounts. When checked, the model will ignore any existing cash flows and treat the Ending Balance: and Weighted Ending Rate: as if they were a newly originated single loan. The model will set the instrument up using the Characteristics found on the Default Instrument/Cash Flow tab. The hope is that highlighting this choice will draw the users attention if this was inadvertly set. Page 3 of 18

4 NAICS Reports can now be produced If you are currently importing North American Industry Classification System (NAICS) Codes into Foresight, there are a few related reports now available. To create them, click Create New Report, then choose NAICS Reports from the Report Type: drop down list. Next, choose one of the 5 available choices in the Report Format drop down list, Compostion, Losses, Missing Codes, Missing Descriptions or Peer Data. Page 4 of 18

5 New choice for Amortize Premium/Accrete Discount Until: Previously, only two choices were available, To Balloon Or Call or To Maturity. An additional choice has been added for Premium To Balloon or Call, Discount to Maturity. While on the General tab of the Characteristics screen, choose this new option from the drop down box. Page 5 of 18

6 New Type of File Description to Import Prepayment Tables It is now possible to import values for a user defined Prepayment Table. On the Manage File Descriptions screen, click the link to Insert new File Description. The following popup box will appear, choose Import Prepayment Table Values from the Type of File Description: box. Then choose the File Type: from the second drop down list (Text Delimited or Text Fixed), depending on your data file. Next, build the Column Positions and Details to match the data file. Page 6 of 18

7 Prepay/Decay Factors can be input to reflect seasonality There is a new Prepay/Decay Factor button on the Default Instrument/Cash Flow sub tab of the Manage Chart of Accounts screen. When clicked, the following popup box will appear. This allows users to vary the factor being applied to the chosen Prepay/Decay Table values. Simply chose the Seasonal Factors radio button and input the appropriate factors based on the month in which they occur. Page 7 of 18

8 Insert Chart Items by Importing from Data File To add Chart items by importing them from a data file simply click the Insert new chart items from a file link at the bottom of the Manage Chart of Accounts screen. On the popup box that appears, click Select Account and choose the chart item to insert the new chart items below. Then, click Browse to choose the comma delimited file that contains the desired new Chart items. Next, click Go to import the new chart items. This process is especially useful for importing the required Memo Accounts for Banks Basel III reporting. A data file specifically for this purpose is available through FARIN s Client Care staff on the ALM Support Line (866) Page 8 of 18

9 Move Current Year Earnings to Capital Closing Account A new Special Account has been added to the Update Institution Settings screen that allows users to move Current Year earnings to the Capital Closing account. When assigned, the new Special account, Current Earnings (moved at least once a year to Capital Closing) will receive monthly Net Income in a forecast. Then, the cumulative amount of that account will be transferred to the Capital Closing (Retained/Undivided Earnings) Special account based upon the settings at the bottom of the Special Accounts screen, Current Earnings Transfer Cycle: dictates how often the transfer takes place and the Starting In: field dictates what month the Cycle will begin. With the above settings, the transfer will take place at the end of the calendar year. Page 9 of 18

10 New Standard Reports on the Report Tasks screen The Standard Reports screen has been redesigned. Some reports have been consolidated together to make the screen a little less cluttered, while a few new reports have been added for more options and functionality. In addition, some existing reports have been reorganized into new Report Sets that make the layout more intuitive. NOTE: Credit Unions will not include the Basel III Reports as shown below. Current Reports now include History Reports as well as Current. NOTE: Credit Unions will have additional reports to those shown below. (CAMEL, FPR, Key Ratio and Risk Based Net Worth reports) Page 10 of 18

11 Forecast Reports now only include standard forecast reports. NOTE: Credit Unions will have additional reports to those shown below. (CAMEL, FPR, Key Ratio and Risk Based Net Worth reports) Interest Rate Risk reports have been organized into 3 separate report sets: IRR Income at Risk, IRR Market Value at Risk and IRR Liquidity at Risk : Page 11 of 18

12 Bank Specific - Basel III Reports have been added to the Standard Reports in a separate report set. NOTE: See Appendix A for setup instructions for these reports: Credit Union Specific - RBC Risk Based Capital Reports have been added to the Standard Reports in a separate report set. The Curent RBC Report was previously named Forecast Risk Based Net Worth Detail. Variance / Comparison Reports have all been consolidated to this report set: Forecast Accuracy Reports have been reduced to the following 4 reports. The Prepayments from Loan ID is a new addition to this section: Page 12 of 18

13 The final report set is Model Assumptions Reports which is a compilation of some previously existing reports and a few new reports. These reports are especially useful for examinations, regulators and auditors typically are looking for the detail supplied by this set of reports: Page 13 of 18

14 Market Value Report with NMD Accounts at Fixed Premium (Credit Unions Only) Credit Unions now have the ability to follow the NCUA s reporting directive to report Non-Maturing Deposits at designated fixed premiums. When running a Market Value report, click the Report Options tab and check the box for Show NMDs MV at Fixed Premium before running the report. The model will simply report a 1% premium over Actual Value in Flat Rates, 2% premium in I&P 100, 3% in I&P 200, etc. No Present Value calculation is performed. Page 14 of 18

15 New Copy Pricing Rate button on the Calculate Offset tab of the Market Value Account Assumptions screen An additional item or tool called Copy Pricing Rate has been added to make calculating an appropriate offset to the discount rate driver even easier. Many users struggle with verifying what the Market Rate: should be when using the Calculate Offset function. This button will give users two options: The first option - Copy Pricing Rate simply copies the current Origination Rate from the Pricing screen into the Market Rate box. Use this if you re confident that the instrument is priced at market rate. If so, simply click the button. The second option - after clicking Copy Pricing Rate the button will change to Copy Market Rate. If this option is clicked the model will pull the value found in the Market Rate row of the Historical Data screen. This data can be imported from a data file or hand entered on the Historical Data screen. Page 15 of 18

16 Enhanced Error checking during Data Import on the Read Files screen Enhancements have been made to the model that will appear during the data import function on the Read Files screen. Be prepared for more popups. While they re called errrors, they should be considered warnings of possible errors. Typically, they re something in the download that the model doesn t fully understand. Many of these Warning Messages will occur when a Lookup Table is encountered. As you may or may not know, Lookup Tables are used to convert codes into something that the model knows or understands. A good example would be a Reprice Index, a data file might have a 1 that signifies Prime and a 2 that represents 1 Yr Treasury, etc. All values should have a replacement, if one of the codes doesn t have a replacement, users would want to be alerted. However, in the case of a Life Cap Replacement, only zeros would require a replacement. The model doesn t know that and will report any valid Life Cap as not having a replacement, these should be ignored. This may be what users would see after importing data: All of the values are either headers or valid Life Caps that should be allowed to be populated in the Cash Flows of the appropriate accounts. Page 16 of 18

17 Data Imported to Accounts designated as Inactive will show as Unused From a maintenance perspective, it s useful to designate accounts that are no longer offered as Inactive on the characteristics screen. These accounts will not show up in a forecast report, but will remain available for historical reporting purposes. In previous versions, if these accounts became active and were included in a data file, the data would be populated in an Inactive account and therefore would not show up in forecast reports. The model has been updated to no longer import data to any account designated as Inactive and instead reports it as Unused in the View File Usage Statistics popup screen. Page 17 of 18

18 Procedures to Correct Unused Records Select Load Recent History from All Tasks Select View All Row Match Rules All inactive accounts will appear highlighted in red Go to the Rule Column (3rd) and highlight and delete the rule Repeat for all the accounts that appear in red Once this is completed and you download again, these codes may still appear in the Unused column. You will want to consider mapping these to Memo Items (off balance sheet accounts) so they will not show up in the future. If you are unsure if you have these accounts, please contact the Client Care Staff for assistance. Page 18 of 18