Frequently Asked Questions About CECL
DXCDA is a fully outsourced, independent CECL solution that will save your bank time, manpower, and money. Our model provides a loan level calculation of PD/LGD/EL that can be incorporated into your bank’s ALLL calculation.
None. DXCDA leverages its internal data to produce the output. No historical data is needed from our clients, which will allow them to focus on other internal changes that have been necessitated by CECL implementation.
That said, the model can be custom calibrated to utilize a bank’s own historical data, if available.
DebtX utilizes actual market transaction information to support its results. For nearly 18 years, DebtX has calculated and stored the trade prices, implied yields, and comprehensive loan data for assets sold in the secondary market through our proprietary trading platform, where assets are traded through a competitive on-line auction process.
Further, DebtX has amassed a comprehensive database of loans that have been submitted by clients for pricing assignments. This database has provided an unparalleled picture of the lending market for a variety of different originator types across all major collateral types and geographies.
The CMBS Universe is another major source of data for DXCDA. The data is a complete time series of CMBS securitizations encompassing over 20 years. The dataset covers all major collateral types and all major markets in the United States. The database is comprised of over 82,000 loans with a combined principal balance over $1.0 trillion.
While we can supply a detailed loan data template used by our current clients that contains over 40 data points, we have listed below the data fields that are crucial to producing a defensible PD/LGD/EL result:
- Asset Zip Code
- Principal Balance
- Maturity Date
- Lien Position
- Interest Rate
- Principal & Interest Amount
- Amortization Schedule
- Debt Service Coverage
- Loan-to-Value Percentage
- Collateral Type
- Payment Status
Most DebtX clients transmit their loan data via our secured document sharing site, DXDocs. We are also able to use any similar site designated by the client.
Yes. DebtX has a long history in loan analytics beyond CECL and works with regulators and auditors on a regular basis. DXCDA has been back-tested and validated, so it is defensible to your regulators and auditors.
Members of DebtX’s Analytics team are experienced real estate economists and quantitative analysts. In addition to their market level knowledge, they have specializations in metro level forecasting techniques and econometrics. DebtX’s forecasting process combines a top-down, bottom-up approach that utilizes various macroeconomic drivers combined with market level loan data.
No. DXCDA is a third party standalone model that is an efficient, off-the-shelf solution for our clients. Our team takes in all loan data and performs the DXCDA analysis. All output reports are then delivered to the client or accessed via our online data visualization platform.
Yes. Since DXCDA produces loan level results, we can easily customize the output based on any client segmentation requirements.
Our onboarding process can take a little as one week. Our analyst team works with clients to ensure that all loan data is correctly mapped to DXCDA and any specific loan characteristics are understood.
Trusted in the Industry
DebtX has a long history in loan analytics beyond CECL and works with regulators and auditors on a regular basis. DXCDA has been back-tested and validated, so it is defensible to your regulators and auditors.