Module 7

Loans Module

RiskSpan Edge Training Program

Learning Objectives

By the end of this module, you will be able to:

  • Understand the purpose of the Loans Module
  • Upload loan data via CSV
  • Use data mapping to standardize fields
  • Leverage smart mapping features
  • Support MSR valuation analysis

Video Reference Guide

Training Video: Loans and MSR Training Demo

Use these timestamps to find relevant sections in the training video.

Timestamp Topic What You'll See
10:00 Data Load Interface Uploaded loan data grid, CSV file loaded with loan details
20:00 Edit Data Map Source columns (left), Edge standard fields (right), Smart Mapping button
40:00 Stratification Results FICO distribution, documentation type analysis, state-by-state metrics
50:00 Forecasting Configuration Prepayment model selection, credit model inputs, scenario configuration

Tip

Watch these sections alongside the slides for a comprehensive understanding of each feature.

Welcome to the Loans Module

Your Gateway to Informed Investment Decisions

The Edge Loans Module Empowers You To:

  • Navigate MSR (Mortgage Servicing Rights) market complexities
  • Streamline loan data analysis
  • Support informed investment decisions

Key Value Proposition

Transform raw loan data into actionable insights for MSR valuation and risk management.

Core Capabilities

What Can You Do?

Capability Description
CSV Upload Import loan files for analysis
Data Mapping Translate client files to standard format
Smart Mapping ML-powered field recognition
Loan Type Support Fixed-rate, ARMs, and others
MSR Valuation Estimate servicing rights value
Risk Management Advanced modeling and scenario analysis

CSV Upload Process

Step-by-Step

  1. Prepare Your File
    • CSV format with headers
    • One loan per row
    • Essential fields populated
  2. Navigate to Loans Module
  3. Click Upload Button
  4. Select Your File
  5. Proceed to Mapping

File Requirements

  • UTF-8 encoding recommended
  • Column headers in first row
  • Consistent data formats
Data Load Interface
Video: 10:00

Shows uploaded loan data grid with CSV file loaded

Data Mapping Overview

Why Mapping Matters

Your Client Files May Have:

  • Different column names
  • Varied date formats
  • Unique field definitions

Data Mapping translates your file to Edge's standardized format.

Benefits

  • Data integrity protection
  • Consistent analysis
  • Error prevention
  • Reusable mappings

The Edit Data Map Page

Mapping Interface

Layout

Left Side: Your file columns

Right Side: Edge standard fields

Mapping Actions

Map Connect source to target field
Unmap Remove connection
Transform Apply conversion rules
Default Set fallback values
Edit Data Map Page
Video: 20:00

Source columns left, Edge fields right, Smart Mapping button visible

Smart Mapping

Machine Learning-Powered Efficiency

What is Smart Mapping?

An ML feature that:

  • Learns from your data patterns
  • Recognizes common field names
  • Suggests mappings automatically
  • Improves over time

How It Works

  1. System analyzes your column headers
  2. Compares to known patterns
  3. Suggests likely mappings
  4. You review and approve

Benefits

  • Faster mapping for repeat files
  • Reduced manual effort
  • Fewer mapping errors

Loan Types Supported

Fixed-Rate Loans

  • Standard 30-year fixed
  • 15-year fixed
  • Other fixed terms

Adjustable-Rate Mortgages (ARMs)

  • Hybrid ARMs (5/1, 7/1, 10/1)
  • ARM index types
  • Rate caps and floors

Other Loan Types

  • Balloon loans
  • Interest-only loans
  • Non-QM products
  • Government loans (FHA, VA)

Key Fields for Loan Data

Essential Loan Attributes

Field Description
Loan ID Unique identifier
Current Balance Unpaid principal
Note Rate Current interest rate
Original Balance Balance at origination
Origination Date When loan was made
Maturity Date Final payment date
Property State Location
FICO / LTV Credit score / Loan-to-value ratio

Full field list available in Edge documentation

MSR Valuation Support

Estimating Servicing Rights Value

Factors Analyzed

  • Loan prepayment rates
  • Market trends
  • Servicing costs
  • Interest rate environment

Outputs

  • Estimated MSR value
  • Optimal bid amounts for MSR acquisition
  • Risk-adjusted returns

Connection to MSR Module

Loan data feeds directly into the MSR Cashflow Engine for detailed cash flow projections.

Forecasting Tab
Video: 50:00

Prepayment model selection, credit inputs, scenario config

Risk Management Features

Advanced Modeling

Scenario Analysis

  • Test different prepay assumptions
  • Stress test credit conditions
  • Model interest rate changes

Cash Flow Projections

  • Monthly principal and interest
  • Prepayment projections
  • Default and loss estimates

Portfolio Analytics

  • Aggregate metrics
  • Stratification reports
  • Comparative analysis
Stratification Analysis
Video: 40:00

FICO distribution, documentation types, state breakdowns

Common Support Questions

Frequently Asked

Q: What file formats are accepted?

A: CSV is the primary format

Q: How do I handle missing data?

A: Use default values in mapping or flag for review

Q: Can I save my mapping?

A: Yes, save mappings for reuse with similar files

Q: What if my columns don't match?

A: Use Edit Data Map to manually connect fields

Module 7 Summary

Key Takeaways

  1. Loans Module is your gateway to loan-level analysis
  2. CSV upload is the primary data import method
  3. Data mapping ensures consistency and accuracy
  4. Smart mapping uses ML to suggest field connections
  5. Supported loan types: Fixed, ARM, and others
  6. MSR valuation leverages loan data for servicing analysis
  7. Storylane tutorials provide interactive guidance

Next Module

Module 8: MSR Cashflow Engine - Project servicing income and expenses

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