Cost Allocation Solution
The Cost Allocation
application allocates general ledger costs over the total portfolio by
loan type, loan size, and probability of default and loss given default.
Origination costs are
allocated by loan type and commitment.
Fixed overhead and servicing
costs are allocated by loan type.
Variable servicing and
marketing costs are allocated by loan type, loan size, and probability of
default.
Provision costs and economic
capital are allocated by probability of default and loss given default.