Methods and systems for assessing loan portfolios

• US 20030126071A1
• Filed: 12/31/2001
• Published: 07/03/2003
• Est. Priority Date: 12/31/2001
• Status: Active Grant

• Current Assignee: General Electric Company
• Original Assignee: GE Corporate Financial Services, Inc. (General Electric Company)
• Inventors: Keyes, Tim Kerry, Srinivas, Santosh Kumar, Midkiff, Catharine Lynn, Burchard, Marshall Gaines
• Granted Patent: US 7,454,383 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Methods and systems for assessing a loan portfolio for variance are described. In an example embodiment, the method comprises the steps of identifying a milestone for at least one loan in the portfolio at a selected time of assessment, determining planned collections for the loan for the selected time of assessment, determining actual collections for the loan the selected time period of assessment, and populating a spreadsheet identifying a current milestone and a cumulative variance between planned collections and actual collections at the milestone for the loan.

Claims

1. A method for assessing a loan portfolio comprising a plurality of loans, said method comprising the steps of:

identifying a milestone for at least one loan in the portfolio at a selected time of assessment;

determining planned collections for the loan for the selected time of assessment;

determining actual collections for the loan the selected time period of assessment; and

populating a spreadsheet identifying a current milestone and a cumulative variance between planned collections and actual collections at the milestone for the loan.

2. A method according to claim 1 wherein the milestone for at least one loan comprises one of not contacted, in negotiation, scheduled for approval, approved, approved delinquent, closed, closed delinquent, paid-in-full, and foreclosed.

3. A method according to claim 1 wherein determining planned collections comprises the steps of denormalizing a business plan to create a list-oriented format for each loan and each planned payment, coding planned payments to an index of time, and determining cumulative planned collections for each loan.

4. A method according to claim 1 wherein determining actual collections comprises the steps of coding actual payments for each loan to an index of time and determining cumulative actual payments for each loan.

5. A database for a variance tracking system, said database comprising a memory storage having data stored therein, said data comprising:

a milestone status for each of a plurality of loans;

planned payments for each loan;

actual payments for a plurality of loans;

indexes of time associated with each planned payment and with each actual payment.

6. A computer program for controlling operation of a computer to determine variance in a loan portfolio, said computer program executable to control the computer to:

associate each loan in the portfolio with one of a plurality of milestones;

determine cumulative planned collections for a selected loan for the selected time of assessment;

determine cumulative actual collections for the loan for the selected time period of assessment; and

determine a cumulative variance for the loan for the selected time period of assessment based on the cumulative planned collections and cumulative actual collections.

7. A computer program according to claim 6 further executable to control a computer to populate a spreadsheet identifying a current milestone and a cumulative variance between planned collections and actual collections at the milestone for the loan.

8. A computer program according to claim 6 wherein the milestone for at least one loan comprises one of not contacted, in negotiation, scheduled for approval, approved, approved delinquent, closed, closed delinquent, paid-in-full, and foreclosed.

9. A computer program according to claim 6 wherein to determine planned collections, said program is executable to control the computer to denormalize a business plan to create a list-oriented format for each loan and each planned payment, and coding planned payments to an index of time.

10. A computer program according to claim 6 wherein to determine actual collections, said program is executable to control the computer to code actual payments for each loan to an index of time.

11. A variance tracker system for tracking variance in a loan portfolio, said system comprising:

a database comprising a memory storage having data stored therein, said data comprising a milestone status for each of a plurality of loans, planned payments for each loan, actual payments for a plurality of loans, and indexes of time associated with each planned payment and with each actual payment; and

a processor coupled to said database, said processor programmed to;

associate each loan in the portfolio with one of a plurality of milestones;

determine cumulative planned collections for a selected loan for the selected time of assessment;

determine cumulative actual collections for the loan for the selected time period of assessment; and

determine a cumulative variance for the loan for the selected time period of assessment based on the cumulative planned collections and cumulative actual collections.

12. A system according to claim 11 wherein said processor is further programmed to populate a spreadsheet identifying a current milestone and a cumulative variance between planned collections and actual collections at the milestone for the loan.

13. A system according to claim 11 wherein the milestone for at least one loan comprises one of not contacted, in negotiation, scheduled for approval, approved, approved delinquent, closed, closed delinquent, paid-in-full, and foreclosed.

14. A system according to claim 11 wherein to determine planned collections, said processor is programmed to denormalize a business plan to create a list-oriented format for each loan and each planned payment, and coding planned payments to an index of time.

15. A system program according to claim 11 wherein to determine actual collections, said processor is programmed to code actual payments for each loan to an index of time.