Lending Service
USBA will work with you to achieve the
optimal loan volume and yield given your bank’s
marketplace while maintaining quality risk
management. USBA’s loan pricing products provide
the foundation for the development of a
practical pricing process that will address the
following issues:
- Increasing loan volume without
sacrificing credit quality or loan yield
- How to make small loans profitable
- How to win more of the highest quality,
largest loans
- An effective way of assuring that
lenders are pricing loans well, consistently
- The value deposit relationships should
have on loan rates
- The appropriate rate differential
between a variable and a fixed rate loan
- The appropriate mix between floating
rate loans and fixed rate loans
- A practical way to price for credit risk
- The return you should expect on a loan
and the rate necessary to achieve that
return
- The appropriate rate differential on a
$10,000 loan versus a $50,000 loan
Lending Tools
Effective implementation of practical loan
pricing tools results in optimal levels of loan
yield and loan volume given the bank’s local
marketplace and risk objectives. USBA’s four
loan pricing models include:
RelationshipManager
Enables commercial lenders to quantify the
impact of both deposit and loan factors in rate
setting
- Evaluates the profitability for multiple
note and multiple deposit combinations
- Facilitates development of alternative
rate and fee combinations to ensure
profitable loan growth
- Quantifies the value of deposits
MortgagePricer
Provides the ability to more accurately price
commercial and residential real estate loans
- Designed for full payout, amortizing or
balloon loans
- Very helpful in pricing large
incremental loans as well as standard
mortgage products
- Applicable to term loans of any type
- Creates rate sheets for both fixed and
adjustable rate loans
LoanPricer
Ensures consumer loan pricing accounts for
all key factors affecting profitability
- Calculates rate of return on a given
loan and the rates necessary to achieve the
same rate of return when adjusting for size
and credit risk
- Applicable to small commercial loans, as
well
- Implements appropriate tier pricing for
smaller loans
- Includes template to quickly and easily
develop rate sheets
EquityPricer
- Analyzes tier structure for Home Equity
Lines of Credit
- Allows for analysis of both teaser rates
and bank-paid closing costs
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