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.