 CRE Loan Stress Test Software
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In an economic downturn, even the most responsible and secure financial institutions are exposed to negative conditions as borrowers default on loans. Stress testing will empower you to defend your institution by identifying and avoiding potential weaknesses in advance. Crest™ from Banker’s Toolbox™ is a cost-effective risk management solution that fits the size and complexity of your commercial real estate loan portfolio.
Shield Your Institution
More Than Just Portfolio Management
Crest™ is an affordable tool that not only gives you a comprehensive, current view of your financial institution’s current commercial real estate loan portfolio, but also projects hypothetical stress calculations based on your actual loan, collateral, and appraisal data.
Eliminate Burdensome Data Requirements
Crest™ is streamlined to provide more accurate stress test results with fewer data requirements than any other stress testing option available, overcoming the ongoing data-gathering challenge faced by all banks.
An Affordable, Flexible Solution
Why pay a consultant for a one-time session when you can have a solution that permanently bolsters your workout environment and enables you to constantly reevaluate your risk? Crest™ alleviates the frustration associated with traditional portfolio risk management by giving you quantitative and qualitative analysis that defends your reserves and is ready to hand to your regulators or board of directors.
Benefits of Crest™
Choose the Most Efficient Stress Testing Method.
Crest™ is infinitely more manageable and cost-effective than the comparable tasks of maintaining data integrity in a spreadsheet or repeatedly hiring outside consultants.
Customize Your Stress Test Factors.
Be confident that your reserves reflect actual credit risk based upon your exact CRE portfolio and local economic environment.
Determine Your Exposure.
Determine potential weaknesses by understanding your individual loans, identifying any hazardous loan concentrations, and investigating vulnerable segments of your lending base.
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Import Data
Crest™ obtains your institution’s electronic loan data from standard files readily available from every data system. Simply import data into Crest™ without any complicated data feeds.
Effortless, Accurate Results
Crest™ is the only CRE loan stress testing tool that gives banks an automated framework that can be used to effectively eliminate burdensome data management requirements and produce a baseline stress test within a single workday.
A Comprehensive Solution
As part of a complete loan risk management solution, Banker’s Toolbox® is available to help validate and clean up your loan data (point out inconsistencies and missing information) and assist you with running your initial stress test.
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Stress Test Variables
Immediately see the potential impact on your institution with the freedom to quickly adjust a combination of variables by any percentage:
Income
When rent prices drop or vacancy/expenses increase, net operating income and the debt service coverage ratio decrease accordingly. Convenient adjustments in Crest™ allow you to account for additional borrower income and/or owner-occupied units, improving accuracy in overall stress test results.
Interest Rate
When interest rates increase, it means that borrowers’ debt payment amounts will increase, and it might become more difficult for them to afford their monthly loan payments. If interest rates increase too much, some borrowers could default on their loans.
Property Value
When property values decrease, loan-to-value ratios increase inversely, and borrowers may begin to owe more than their collateral is worth. HIgher net collateral shortfall has the potential to increase risk in your commercial real estate loan portfolio, even if every loan was originated with stringent underwriting standards.
In addition to state-of-the-art technology, the Crest™ solution includes expert assistance from Banker’s Toolbox® risk management consultants who lend guidance through data cleanup and initial stress testing. Even after the system is up and running, quarterly or annual management reports can be outsourced to Banker’s Toolbox® or a third-party consultant/auditor.
Contact Us Today
With a properly diversified and hedged loan portfolio, your institution will be equipped to withstand market pressure in any economic environment. When you partner with Banker’s Toolbox,™ you can be assured of proven performance and top customer support. Contact us today to see how easily Crest™ can revolutionize your lending portfolio risk management.
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Guadalupe National Bank's Success Story