Stated leverage targets could also change following the adoption of the current expected credit loss (CECL) accounting standard, which will require life of loan
loss reserving practices, and are slated to go into effect in 2020.
Given the significance of car ownership in the lives of consumers, the CFPB wants to make sure that auto lenders, including auto finance companies, are treating consumers fairly throughout the life of loan
Services now include manual flood determinations, life of loan
tracking services, full LOMA preparation and Instant e-LOMAs, as well as solutions to unique compliance requirements.
Other markets with total life of loan
savings of more than $50,000 included counties in Miami (FL), New Orleans (LA), Seattle (WA), Orlando (FL) and New York.
CECL projects expected losses over the life of all loans, whereas the credit deterioration model only calls for a projection of 12 months for those loans that have not shown evidence of credit deterioration since origination and would still look at life of loan
for those that have.
The new standard requires banks to record credit losses at loan origination based on a "life of loan
New, detailed processes that will depend on more granular data collection and analysis, economic forecasts, modeling and documentation to produce defensible life of loan
loss estimates will require effective tools.
"So we created LOLAS[TM], Sperlonga's Life of Loan
Association Surveillance product.
Previously a subscription service, the improved version, now known as Life of Loan
Association Surveillance (LOLAS[TM]), is a valuable safe guard when originating loans or modifying existing mortgages by virtue of warning servicers of potential defaults before mortgage payments are actually missed.
Tier 2 Representation and Warranty Framework (Mixed): Life of loan
representations and warranties are being provided by MLIC (A+/Stable Outlook/F1+).
* Before New Standards: Reported as deferred revenues and recognized over life of loans
She added: "Such measures often only prolong the life of loans
that are truly unsustainable."