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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.


Areas of Applications , CaseWare IDEA



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