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.