Print This Post

Find Credit Exposure Weaknesses

Find Credit Exposure Weaknesses

Overview: So you (or your boss) is worried that commercial real estate loans secured by retail property (or maybe strip malls) in a particular market or group of markets is very weak. He/you want to know your exposure to this situation, and whether the condition of the loans is strong or weak. What would you do now to answer this question?

We are told that many organizations would require several hours or perhaps a couple of days for an analyst to get the information. With the Madison System, the answer is found in seconds.

What you would so is go to the portfolio filter page and select the collateral types that are of concern, and select the geographic markets or cities or states or regions or (if you must!) zip codes that are of concern. This will immediately filter the portfolio to the subset of loans that are collateralized by the respective properties in the respective markets.

You can then call up any report in the Madison System and it will display information about these loans. One report, for example, will list the loans� current balance, current exposure, as well as the loan rating, LTV, DSCR, occupancy, and inspection rating for these loans and properties. With this information at hand, you can immediately determine whether this is an exposure to be concerned with or not.

You can do this kind of exposure analysis based on virtually every appropriate variable in the System in seconds, not hours or days. And the reports that are produced are presentation ready, all set to give to the Board or Management Committee.

Another Variation – Find Loans with Weak LTVs or DSCRs

You may also want to see all the loans in the portfolio with ratings worse than �X� an LTV worse than �Y� and/or a DSCR worse than �Z.� Apple would say they have an app for that. We say we have a report for that, so you can get the list of loans in seconds in a presentation ready report including graphics.

Yet Another Variation – Find Tenant Exposures

You are concerned about tenants in a particular set of industries and want to find out how many loans are secured by collateral where these tenants occupy more than �X� percent of the building and the lease expires in �Y� months. We have a report for that too. Get your results in seconds in a presentation ready report.

OK, Just One More – Find Loans with Advere Loan Ratings

Want to see loans with a recent loan rating that is worse than the prior rating? You guessed it, the Madison System has a presentation ready report for that too.