New LLA Features: Version Updates
The biggest feature 3.16.3 brings to the table are Pool Sets. Pool Sets are an evolution of Shadow Loss Analysis and allow the application to apply multiple methodologies to the same underlying accounts. While the same amount of initial setup is involved in creating a Pool Set as previous Shadow Loss Analysis instances, running them quarter to quarter is as easy as initiating a reporting period. Factors can be applied to pools in the new Pool Set in the same user interface you are already using and the differences between the Set’s reserve numbers can easily be compared on the Reserve page. This is the groundwork for running challenger models under CECL.
Version 3.16.3 also adds the “Alerts” feature. Some actions in the application are set to trigger an alert and these alerts are set for a specific user permission level. When one of these actions occurs, users with the appropriate level of permission will receive an in-app notification. For example, when a reporting period is initiated, users with permissions to edit Specific Reserves will be notified to go and review Specific Reserves for the newly created period. These alerts can be tailored to your institution’s needs. This important feature will continue development in future LLA versions.
Additionally, there is some new “right-click” functionality added to the Factors page and the Reserve page. Right-clicking on a pool record will give the option to view the information driving the loss rate for that specific pool and all the factors applied to that pool.
The 3.17.1 release simplifies processes that have become more intricate as complexity has been added to the application. Much of the work done for this release is in the background, but user interface enhancement grew out of those changes. In simple terms, many of the data points for an account record have been flattened to make the retrieval and manipulation of them more efficient. The benefit becomes quite noticeable as you get into initiating a reporting period with tens of thousands of loans.
This change led to a redevelopment of the user interface for account information. Now, the account details can be tailored to your specific institution so you can see the data points you need more easily. Also, functionality previously accessible via multiple pages for an account is now down to one streamlined view. The same view is available from the Pool Browser so you can see loss history and pool history from there without having to switch over to another page. You can also view the details of multiple accounts at the same time.
The other big addition in 3.17.1 is the Loan-Level Stress Testing module. This is a highly-tailorable module that allows you to select multiple default trigger points for a pool then any number of stress points for a pool. The application applies the stresses to each loan in the pool and then checks against the default points to determine if the loan defaults based on the stresses applied.
Please join us for the first of a series of webinars starting in August so you will be able to see these functionalities in action.
Register for the August 24th webinar below.