Portfolio managers can now instantly view, report and forecast loan performance benchmarked against their initial investment expectations
LoanStreet Inc. has announced the launch of Performance Analytics for loan participations, a new platform that allows financial institutions to analyze and forecast the performance of loan pools purchased in the secondary market. The platform enhances LoanStreet’s existing analytics suite by enabling loan portfolio managers and financial analysts to apply a powerful scenario analysis engine that forecasts the future Internal Rate of Return, along with future prepayment and charge-off rates.
The platform will provide institutions with a range of key performance indicators, including return on investment, yield, and risk-adjusted return. It will also allow them to compare the performance of their loan pools to industry benchmarks, and to identify areas for improvement.
Key features of LoanStreet’s Performance Analytics solution include Scenario Analysis, which enables portfolio managers to stress test and forecast performance, based on assumptions of future prepayment and charge-off rates, combining historical data with projected future cash flows. It also includes Pool-level Performance Reports, which deliver actionable analytical insights to key stakeholders in a polished, printable and presentation-ready report in Excel format.
The platform also offers Premium Amortization Tools, which allow users to select a preferred premium amortization method and download amortization schedules in .csv format, and Investment Expectation Analysis, which stores initial expectations for an investment’s performance to allow analysts to visualize how those expectations compare to actual results. It also includes Cost Basis Return, which tracks the current performance of an asset by calculating the monthly ratio of income over the amortized cost of the investment.
“Understanding precisely how pools purchased in the secondary market are performing and then forecasting forward has been very challenging for institutions managing a loan participation program,” said Ian Lampl, co-founder and CEO of LoanStreet Inc. “Now, for the first time, financial institutions are able to quickly analyze investment performance versus their initial expectations, as well as anticipate future results.”
“Our participation program is a critical part of our overall financial performance. With LoanStreet, we have confidence in our ability to respond to a changing economic environment with information and insights to adapt and actively manage our balance sheet,” said Kelley Harwood, Vice President at SECU Maryland.
About LoanStreet Inc.
LoanStreet Inc. is the provider of the leading platform for loan sharing, reporting and analysis. The company’s fully integrated, online platform streamlines the process of sharing, administering and analyzing loans for credit unions, banks and direct lenders. More than 1,300 financial institutions rely on LoanStreet to access a nationwide network of lenders and investors, track the performance of their loan portfolio, and more profitably grow and diversify their loan portfolios.
The performance analytics tool is available now to all LoanStreet customers. To learn more about this new offering, please visit the LoanStreet website.
