BancLab Updates FolioInsight, LossInsight, and MarketInsight. BancLab has updated its FolioInsight, LossInsight, and MarketInsight products with 2007 loan transactions. DataBanc, our proprietary loan performance database, now includes more than 850,000 small business loans to borrowers nationwide and from all major industries. Our transactional data include nearly 390,000 prepayments, 100,000 defaults, and 60,000 recoveries dating back over two decades, providing historical observations throughout the business cycle.

BancLab Releases LoanInsight. BancLab has released its new web-based LoanInsight loan pricing model. The model combines borrower characteristics, financial information, and loan terms with BancLab’s analytics to generate loan level risk-adjusted cash flow projections. Based on these cash flows, LoanInsight estimates risk-adjusted return on capital (RAROC) and economic value added (EVA) for every loan in a client’s portfolio. BancLab customizes LoanInsight to fit each client’s unique data architecture and loan structures. LoanInsight also tracks portfolio-level historical performance and features portfolio composition reporting by various risk factors. Using BancLab’s secure Internet application, clients can upload or input loan information online to generate RAROC and EVA estimates for prospective and existing loans. Clients can also stress test the results for different loan terms, financial assumptions, and economic scenarios.

BancLab Enhances SBAInsight. BancLab has enhanced its SBAInsight model, which forecasts voluntary and involuntary prepayment speeds for small business loan securitizations. Both poolers and investors typically rely on aggregate market statistics to make investment decisions. However, aggregate statistics cannot capture the unique risk profile of each pool, nor do they factor in the impact of changing macroeconomic conditions on prepayment and default rates. SBAInsight uses a multi-factor regression model, which encompasses borrower and loan characteristics as well as macroeconomic conditions, to project prepayment speeds for securitized pools. BancLab has enhanced SBAInsight to reflect changes to the SBA’s Secondary Market Guaranty (SMG) program, and we continue to update the model with our ongoing assessments of prepayment penalty impacts.