What is a Static Pool Analysis?
A static pool analysis is a method used by debt investors to evaluate the historical performance of loans or other assets originated […]
What is a Loan Tape?
A loan tape is a detailed file that contains information on a portfolio of loans held by a bank or other financial […]
What is Interest Accrual?
Interest accrual refers to the accumulation of interest on a loan over a period of time. As interest accrues on a loan, […]
What is Prepayment Rate?
A prepayment rate, also known as the constant prepayment rate (CPR), is a metric used in lending to measure the percentage or […]
What is a Verification Agent?
A verification agent, also sometimes referred to as a verification trustee or review agent, plays an important role in debt facilities and […]
What is Portfolio Duration?
Portfolio duration is a measure of the average maturity of all the debt instruments in a portfolio, weighted by the relative value […]
What is Weighted Average Life of a Loan Portfolio?
The weighted average life (WAL) of a loan portfolio is a measure of the average length of time that each dollar of […]
How are Servicing Metrics Different for Loans vs Credit Cards?
Banks and other financial institutions provide various lending products to consumers and businesses, including installment loans and revolving lines of credit like […]
What is a Trustee?
A trustee plays a critical role in a consumer loan debt warehouse facility. As the independent third party oversight on the facility, […]
What is a DACA Account? (Deposit Account Control Agreement)
A Deposit Account Control Agreement (DACA) is a legal agreement that gives a lender some control over a borrower’s bank account. DACAs […]
What is a Structuring Fee?
A structuring fee is an upfront fee charged by lenders when putting together a new debt warehouse facility. It is intended to […]
What is Tangible Net Worth?
Tangible net worth (TNW) is an important financial metric that lenders use to assess a company’s financial health and ability to repay […]