17.2.3.4 Model Integration Tab
This tab allows you to define the assumptions based on Moody's structured cashflow library integration for All Business and New business balances.
This tab will be displayed only if you have installed Moody's structured cashflow library. Following are the prerequisites to view the “Model Tuning” tab:
- Moody's structured cashflow library installed on the setup
- Moody's structured cashflow 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. Following modeling options are available in the Model Selection drop-down list:
- None
- Source System Provided
- ADCo
Based on the selected model, the UI parameters vary.
Source System Provided
Table 17-8 Source System Provided Fields and Behaviors
| Field | Behavior |
|---|---|
| Prepayments | This is the magnitude of the prepayment rate. The default value of this is 1, and it should be greater than 0. |
| Default | This is the magnitude of the default rate. The default value of this is 1, and it should be greater than 0. |
| Recovery | This is the magnitude of the recovery rate. The default value of this is 1, and it should 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 for mortgage Draw rates. The default value of this is 1, and it should be greater than 0. |
ADCo
Enter values in these parameters if you want to use ADCo LDM integration along with Moody's Structured Cash Flow library.
Table 17-9 ADCo LDM Integration with Moody’s Structured Cash Flow Library
| Field | Behavior |
|---|---|
| SMM for Failed Loans | This is the failed loan's SMM in percentage. The default value of this is 0 and it should 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 should 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 should 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 should 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 should be in the range of 300-850. |