18.2.3.6 The Model Integration Secondary Tab

This tab allows you to make the assumptions based on Moody's structured cash flow library integration for All Business and New business balances.

This tab will be displayed only if you have installed Moody's structured cash flow library. Following are the prerequisites to view the Model Tuning secondary tab:

• Moody's structured cash flow library installed on the setup
• Moody's structured cash flow library enabled for the specific user
• Product is securitized products or loans

You can tune the model using the Tune option. Select the model from the Model Selection drop-down list and click Tune. The following modeling options are available in the Model Selection drop-down list:

• None
• Source System Provided
• ADCo

Based on the selected model, the parameters will vary.

Figure 8: Define Model Integration secondary tab to define the Product Characteristic Rule

Table 18-8 Fields of Source System Provided tab and their Descriptions

Field	Behavior
Prepayments	This is the magnitude of the prepayment rate. The default value of this is 1, and it must be greater than 0.
Default	This is the magnitude of the default rate. The default value of this is 1, and it must be greater than 0.
Recovery	This is the magnitude of the recovery rate. The default value of this is 1, and it must be greater than 0.
Recovery Lag	This is the recovery lag applied to each loan. The default value of this is 0, and the value range is 1 to 100.
Servicer Advancing	Select the servicer advancing as None, Interest, or Both. The default value of this is None.
Draw Rates	This is the magnitude of mortgage Draw rates. The default value of this is 1, and it must be greater than 0.

Enter values in these parameters if you want to use ADCo LDM integration along with Moody's Structured Cash flow library.

Table 18-9 Fields of ADCo tab and their Descriptions

Field	Behavior
SMM for Failed Loans	This is the failed loan's SMM in percentage. The default value of this is 0 and it must be in the range of 0-100.
MDR for Failed Loans	This is the failed loan's MDR in percentage. The default value of this is 0 and it must be in the range of 0-100.
Recovery for Failed Loans	This is the failed loan's recovery in percentage. The default value of this is 0 and it must be in the range of 0-100.
Subprime FICO Loans	The loan is considered subprime if FICO is less than this value (620 if not provided). The default value of this is 620 and it must be in the range of 300-850.
FICO to use(if not available)	FICO to use for loans that do not have this information. The default value of this is 680 and it must be in the range of 300-850.