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.
 

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.

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.                     
 

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