Cost Allocation Analysis
The cost allocation
software application is a loan portfolio management tool which is used to
allocate the annual operating costs (origination, fixed overhead, fixed
and variable servicing, and variable marketing), loan loss provisions, and
capital funding over the total loan portfolio.
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 capital
funding are allocated by probability of default and loss given default.