Loan loss expectations are ever-evolving, and Accolade's tools can empower you to navigate the changes.
Detailed loan-level analytics
Accolade offers a regression analysis to determine your credit union's loan risk based on characteristics of the loan, borrower, and collateral.
Our reports and consulting services help:
Determine CECL reserves by loan type and credit tier
Apply qualitative model adjustments and default assumptions
Prioritize loan servicing efforts
Calculate risk adjusted returns
Probability of Default
The model estimates a conditional monthly default (MDR) probability over the remaining life of the loan using historical datasets in addition to current loan and borrower information provided by the credit union.
Cash Flow Projections
Amortization schedules are run for each individual loan integrating the Probability of Default factors, thus providing a forward-looking loss calculation over the remaining life of each individual loan.
Economic Factors
Various economic scenarios can be weighted in the cash-flow model to influence default rates. Economic data is aggregated from the St. Louis Federal Reserve national database on a quarterly basis.
Loss Given Default
Loss-given-default is calculated month-over-month through the remaining term of the loan to estimate potential losses to provide a CECL reserve for each loan.
