Loans and Mortgages

CaseWare IDEA Applications

The following tests are relevant where the accounts are either commercial or personal loans.

Analyses

• Stratify balances and create a summary file
• Analyze balances and interest rates by risk rating
• Analyze the file over internal accounts and customer account types
• Analyze interest margin on accounts by type
• Analyze load portfolio by servicing officer, location, loan type, etc.
• Review and analyze underlying collateral on loans secured by Accounts Receivable and Inventory
• Summarize load portfolio information based on data in any field
• Summarize loans by collateral and purpose to analyze portfolio risk

Calculations

• Cast (or total) accrued interest, balance
• Reprove arrears calculations and reporting
• Check interest and service fee calculations

Matching and Comparing

• Use cross-matching techniques to pick up multiple loans to the same address
• Compare balances at different periods to identify movements

Exception Tests

• Identify staff loans
• Identify large loans
• Identify loans with unusual interest rates
• Identify balances greater than original advances
• Identify negative balances
• Create custom reports on new, renewed and past due loans

Other useful tests include stratifying interest rates against each risk rating. Generally higher risk loans should bear a higher rate of interest. The analysis followed by exception testing can pick up anomalies or branches/individuals that are either risky or particularly prudent in their lending.