Equity Analysis Panel

While creating an Account or Case Collateral screen, system administrators have the ability to add an Equity Analysis panel that enables users to automatically calculate equity, deficiency, and other collateral values within the workspace. With the appropriate permissions, users are able to create and edit an equity analysis for the account or case in context directly within the panel to eliminate the need for manual calculation of these values and reduce the possibility of errors.

The ability to create and edit an Equity Analysis must be defined for each user by a system administrator in System Management > Users.

Equity Analysis Details

All Equity Analyses share common details that are defined when creating, copying, or editing an analysis. These details are separated into sections of the Equity Analysis screen.

FMV

The FMV (Fair Market Value) details include any existing valuations on the collateral and the fields necessary to determine the collateral's fair market value.

Valuations are created for a collateral through the Valuations panel added to a collateral screen by a system administrator.

The following details are defined in the FMV section:

Field

Description

Value

Enter the value of the collateral. This field is required.

Discount %

Enter the discount percent. By default, this value is pre-populated based on the setting in System Management > Modules > Collection > Collateral Settings, but can be overwritten. This field is required.

Discount $

Enter the discount amount. By default, this value is pre-populated based on the setting in System Management > Modules > Collection > Collateral Settings, but can be overwritten. This field is required.

FMV

This field updates dynamically based on the values entered in the Value, Discount %, and Discount $ fields.

The FMV is calculated using the Value * (100% - Discount%) - Discount$.

Senior Debt

Senior Debt details include any existing liens on the collateral and the total amount of the selected lien balances.

Liens are created for a collateral through the Liens panel added to a collateral screen by a system administrator.

Internal Debt

Internal Debt details include any accounts that are secured by the collateral and the total amount of the selected loan balances.

Discounts

Discount details include any fees and costs that reduce the recoverable amount of the collateral and the total amount of the selected discount amounts.

Creating an Equity Analysis

An Equity Analysis can be created for a new collateral as well as an existing collateral. To create an Equity Analysis for a new collateral, click within the Collaterals panel and select the desired collateral type from the drop-down. To create an Equity Analysis for an existing collateral, highlight the desired collateral within the Collaterals panel and click .

The administrator-defined account or case collateral panel displays. Click .

The Equity Analysis screen appears. Review the FMV details and make any modifications, if necessary.

In the Senior Debt and Internal Debt sections of the screen, select an item for calculation in the Total amount by double-clicking the item in the grid, selecting the check box, and clicking Save. Remove an item from calculation by double-clicking the item in the grid, deselecting the check box, and clicking Save. The Total updates to reflect the selection or deselection of the discount.

In the Discounts section of the screen, select or deselect items for calculation, and/or perform the following actions.

Show Create a Discount

To create a new discount, click .

Enter the Description and Amount of the discount then click Save. The Total updates to reflect the new discount.

Show Delete a Discount

To delete a discount, highlight the discount and click

. The Total updates to reflect the removal of the discount.

The Results section of the Equity Analysis screen is updated dynamically based on the values entered in the FMV, Senior Debt, Internal Debt, and Discounts sections. If desired, enter any Comments, Recommendations, and a user name in the Approved By field.

The Equity is calculated based on the FMV - Total Senior Debt - Total Internal Debt - Total Discounts. A negative equity is called a Deficiency and is displayed in parenthesis. The Available Equity is calculated based on the FMV - Total Senior Debt. This is the amount that may be recoverable by the financial institution.

When finished, click or at the top of the Equity Analysis screen to return to the account or case collateral panel. If included in the grid, the Date Analyzed field updates to the current date and time.

Viewing an Equity Analysis

To view an existing Equity Analysis, highlight the desired analysis in the Equity Analyses panel and click .

The Equity Analysis screen appears with all editable fields disabled.

To calculate the Equity Analysis with new values, click at the top of the screen. The editable fields become enabled for editing. Make any modifications to the analysis and click or to return to the account or case collateral panel. Click to disregard any changes.

Copying an Equity Analysis

To create a new Equity Analysis based on a copy of an existing analysis, highlight the desired analysis in the Equity Analyses panel and click .

The Equity Analysis screen appears. Make any modifications to the analysis and click or to return to the account or case collateral panel. Click to disregard any changes.