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KAL_II Loan Servicing Valuation Manual
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This chapter covers the computer system, the data files, and the forms of output available to the user.
What the Chapter presents -
SYSTEM ENVIRONMENT
This chapter explains the fifth item on the main menu, System Environment. The chapter describes the computer system necessary to run the model and the installation of the software.FUNCTION KEYS
The program uses the function keys to provide assistance while entering the data. The function keys and their uses are explained in this chapter.INPUT FILE EDITS
The chapter discusses the first menu item on the main screen of the program. These input edit checks are used to set high and low ranges for the data input fields.
DOS FILE DESCRIPTIONS
The program uses many DOS files to accomplish the valuation. It is important to understand how the files can used to your advantage. Many hours of typing and searching can be saved by understanding and using subdirectories effectively.
PRINTED REPORTS
The program provides many different forms of printed output. This can be an advantage in saving time and organizing valuation data. The different forms of printed output are explained in this section.
A. COMPUTER SYSTEM
HARDWARE
In order to the system to run efficiently the following configuration is necessary:
IBM PC or Compatible
Optional Numeric Coprocessor will increase the program speed
640k Ram Memory
800K Ram Driver (For Group Simulation)
Floppy Disk (Hard Disk Preferable)
EGA Monitor (System supports all monitors)
Dot Matrix Printer (Laser Printers are supported)
PC/DOS 3.3 or above
INSTALLING THE SYSTEM
The program is easily installed on a hard disk system. Use the directory outline described below to take advantage of the other programs that accompany the Model. The disks provided have these directories setup.
It is possible to use XCOPY (IBM DOS Utility) to completely build your system. Put the diskettes in drive a: and type
XCOPY A:\KAL /S
This will create the subdirectories that are outlined below. Add a PATH (IBM DOS) command to your DOS startup file and then execute KAL_II from any user directory.
DISK DRIVE SETUP
We recommend the following directory structure:
MAIN \KAL KAL_II.EXE KAL_II.HLP \KAL\WKS Spreadsheet Files \KAL\DOC Documentation \KAL\AA User Director *.USE, etc \KAL\BD User Directory1. \KAL Directory
Create a \KAL library and copy the KAL_II files to the library. If you do not want to use subdirectories then create a directory named KAL and copy all the files into that directory.
2. \KAL\WKS KAL_II Subdirectories
Create the subdirectories listed above. Copy all spreadsheet files into \WKS, documentation files into \DOC, and HELP files (*.HLP) in to \HELP. The spreadsheet utilities that accompany the Model expect to find worksheet files in \WKS.
3. \KAL\AA USER Subdirectories
Create a single letter subdirectory for each set of analysis files you are going to use. All GNMA analysis files for the manual examples are in a subdirectory named \KAL\G. The standard analysis files are in \KAL\N. When the program is executed from a subdirectory, the program automatically finds the last analysis done in that subdirectory. The program is located in the \KAL directory.
OPERATION OF THE SYSTEM
The user should switch to the directory which will contain the data
files. Executed the program by typing "KAL_II". The program will load the last files used by the system. This information is found in the Previous.USE file. Several sample files have been included to help the user become familiar with the Model.
When large amounts of new data are being entered into the system, it is important to SAVE the file occasionally. During the data input stages, it is important to backup up the system as often as possible.
FILES USED BY THE SYSTEM
The model uses a system of identifying files for each function of the program. It is important to SAVE the files which you will use again in the future. You can move these files to any directory you desire. Once you understand how the files are used by the program you will see the benefits of using the different data files. The most important use is to be able to save each valuation configuration separately. As an example, You can then use different firm and economic scenarios on the same portfolio data without changing any of the data input fields.
- The following is a list of the DOS file extensions used by the system.
- *.DEF Data Edit Checks
- *.ECN Economic Definition Files
- *.FRM Firm Definition Files
- *.MKP Portfolio Definition Files
- *.GRP Group Definition Files
- *.DBT Debt Analysis Spreadsheet Files
- *.MON Monthly Analysis Spreadsheet Files
- *.YRS Yearly Analysis Spreadsheet File
- *.BAL Cash Balances by month
- *.VAL Valuation Results - PreDebt
- *.ROE Valuation Results - After Debt (ROE)
- *.REP Recommended Report File Extension
- *.TMP Temporary data files
- *.HLP Program Help file messages
OTHER FILES USED IN THE SYSTEM
PREVIOUS.USE - This file contains the previous files used by System. The next time you load the KAL_II program, the last definition data files used are loaded into the system.
KAL_II.EXE Program File
KEYBOARD FUNCTIONS
{F1} - HELP Function Screens
Pressing the {F1} while the cursor is over a particular data field will initiate the Help function. The system will display the message on the screen.
It is helpful to keep similar valuation files in a subdirectory. If you load the KAL_II program from this subdirectory you will have direct access to all the files in that subdirectory. The program will also begin with the files that were last used in that subdirectory. The only thing you will not have access to is the HELP file. If it is important to access the HELP file then copy the HELP file into that subdirectory.
{F2} - Screen "Hot Shot"
When you press the {F2} key the program will ask you (in the lower left corner) for a file name. After you enter a file name and press return, the program "appends" the current screen contents onto that file as ASCII characters. Each line of the screen ends with {CR}{LF} characters. Only the characters up to the last non-blank character on each line are put into the file, so each screen is usually less than 2,000 characters. Screen Dumps are used to save a single computer screen. The Print-to-File option discussed later will save the entire set of reports that are generated according to the report options that are set.
{F9} - DISK FILE REPORTS
Directs the output report to go to a disk file of your choice instead of the printer. All the reports listed on the report screen will be sent to this file. Use your word processor to access this file and reformat the reports. This makes the presentation of the results very fast and easy. The {F9} key will turn off this feature.
{F10} - DISK FILE REPORTS
Turns "Off" the Print-to-File feature selected under {F9}.
{ALT}{H} - This will turn on data field numbers in the upper left hand corner of the computer screen. If you wish to alter the HELP file you must turn on this switch. The Help file be altered by
using the special program provided with the Model.
{DEL} - Prior data fields often must be deleted before new data can be entered
{Bksp} - Key can be used to remove prior data fields before entering
new Input Data.
{Tab} - Used to move between data entry input fields
{Enter} - can be used for the following:
. To select menu items when the cursor is over the item.
. To enter input data and move on to the next field.
{PgUp} & {PgDwn}
. To page through the Rates & Factors screen
. To page through the tables created by the program
{ESC} - The escape key is used to:
- . exit an input field
return to a prior Menu Level
. leave the Program; after {Esc} you must enter a "Y" to exit the program. This is done to prevent accidental exit of the program. If data is not "Saved" it will be lost.
{Arrow Keys} - The arrow keys can be used to move between menu items. Once a menu item is selected using the arrow keys, typing {Enter} will select that item.
{Shft}{PrtSc} - This will make a printed copy of the data displayed on the monitor. Make certain the printer is connected before using any of the printer facilities.
{Ctrl}{Break} - This will immediately stop program execution. Any changes made to the files since the last SAVE was executed will be lost.
SCREEN NAMES
Each screen used by the program has a unique name. The screen names are identified by the letter "S" in front of a number; i.e. {S410}. These screen names are only used to help the User locate information in the KAL_II Users' Manual. A screen index has been set-up to help the user to locate information on particular data fields.
BACKUP OF THE SYSTEM
All Data Files should be backed up a regular basis. The KAL_II Program should be copied to a work disk and the original put away in a safe place. The program disk is not copy protected. Each Model version shows the name of the licensee in the first screen.
B. MAIN MENU
MAIN MENU Screen {S0)
Markov Simulation of Mortgage Servicing Main Menu File Management--- -- Check Values for Inputs Economic Data Firm Data Loan Portfolios System Environment Computations--- Portfolio Simulation Group Simulation Quit ProgramMENU OPTIONS
Menus work in two ways:
ARROWS - The User can move the indicator down by pressing the down arrow or the space bar. Move up by pressing the up arrow or the backspace. When the indicator points to the desired option, press {Enter}.
LETTERS - Press the first letter of the option you want, and the program will select it without waiting for you to press {Enter}.
{ESC} - This will return to the previous menu, the same as selecting "Quit".
The screens do not show all the input data fields. If a field is not required for the input then the system will not display those fields on the screen.
HOW TO ENTER DATA
There are several different methods used to enter data:
1. Direct entry using the numeric keypad and the {Enter} key.
2. Cursor - To alter existing data it is often necessary to move the cursor to the point you want to start entering.
3. Menu Field - In some menus the data is enter at the bottom of the screen and the data is placed for you by the program. Always use the {Enter} key and complete all the fields in each menu even if the field is set to zero.
Percentages - To enter a number as a percentage it is necessary to type the complete number as it would appear in the data field.
The number 10% would be entered as: {0} {.} {1}If a mistake is made while entering the number, use the {BckSp} key to erase the old data.
Dollars - To enter 100.00, type the complete number including the decimal point. Errors can be corrected by using the {BckSp} Key.
Deleting Data Fields - To delete Data Fields use the {BckSp} Key. The {Delete} key works only when the cursor is directly over the character to be deleted.
Corrections - To correct a data field, put the cursor where you want the field to begin and begin typing.
C. FILE FUNCTIONS
DOS FILE NAME CONVENTIONS
Below is a description of the file names used by the Model. The model supports the full DOS file naming convention. Subdirectories can be very helpful when you are working with a large database of information.
(DRIVE) - The system will default to the current drive. If you wish to change drives, specify the drive as part of the file name.
(PATH) - The data files are saved on the diskette/disk with whatever DOS (PATH) you specify when you use the save file screen. If you wish to use (SUBDIRECTORIES) then make them part of your file name. You can change the path by typing a new path name such as: A:\SUBDIR\F.
(NAME) - This means the "DOS" file name. The file Name may be up to eight (8) characters long.
(EXTENSION) - The program automatically adds the proper "extension" for the type of file (MKP for Portfolio, ECN for Economic, FRM for Firm, etc.) Below the line are the names of files of the same type in the CURRENT disk directory.
FILE FUNCTION SCREEN
CHECK VALUES FOR INPUT Screen {S10}
Check Values for Inputs --> Change Data Display File Names Erase File Load File Make New File Save File Quit MenuThere are four different file function screens, input checks, economic, firm and portfolio. These screens are used to access the different DOS functions that are provided with the program. Only a single set of functions are described in this section.
CHANGE DATA Screen {S11}
The change data screens are used to enter the actual data. Each section has a different change data screen. The screens are presented in the relevant section of the manual.
DISPLAY FILE NAMES Screen {S12}
Check Values for Input GNMAEX -- Press Any Key --The program will display all files that are available for use by the program. If the file you are looking for is not in the directory, change the file name to include the subdirectory name or go to DOS and use an available search tool. The program will only display file names that are in the directory from which program was loaded from. If you load KAL_II from a different directory, i.e. \KAL\G\, then the program will display the files in the \KAL\G subdirectory. It is helpful to keep similar files in a unique subdirectory.
Keeping proper records of your files is important to avoid losing valuable data.
ERASE FILE Screen {S23}
Check Values for Inputs Enter File Name File Name: Enter the complete DOS name required to find the file. e.g. only the name if it is in this directory. Enter the full :/subdirectory/name if it is not on this disk or in the current directory. Files on Disk GNMAEXErase File - Files which you erase can not be recovered. Use this function carefully! Backup all data files on a regular basis. No one can replace a data file once it has been written over by the system.
LOAD FILE Screen {S14} Check Values for Input Enter File Name File Name: Enter the complete DOS name required to find the file. e.g. only the name if it is in this directory. Enter the full :/subdirectory/name if it is not on this disk or in the current directory. Files on Disk GNMAEXFILE NAME
Each time the model is loaded into memory it loads the files that were active the last time the model was used. It does not load the changes that were made the last time the model was used unless the changes were SAVED before exiting the model.
Only one file can be LOADED at any time.
MAKE NEW FILE Screen {S15} New_Data Check Values for Input Change Data Descriptive Title Economic Data Edits Firm Data Edits Loan Portfolio Edits Quit MenuNew_Data - Disk File Name
The name that the program creates when this menu is selected. It is usually easier to start from a previous version of a file, change the data fields and save the file under a new name. Saving the file under a new (NAME) will then create the new file.
If you want to create files from scratch then follow all the screens in the MAKE NEW FILE MENU.
The MAKE NEW FILE menu screens are the same as the CHANGE DATA Screens only there is no old data to change. You will find that many data fields need to have values or the program will not continue. Once a new file has been created and entered, run the printed report and verify the new dataPRINT FILE Screen {S26}
GNMAEX GNMA I Example Economic Data Change Data Display File Names Erase File Load File Make New File --> Print File Save FileQuit Menu
PRINT FILE
This will cause immediate printing of the data input information. If you have selected the disk file option, the reports will be sent to the disk as an ASCII file.
SAVE FILE Screen {S27} GNMAEX GNMA I Example Economic Data Change Data Display File Names Erase File Load File Make New File Print File --> Save File Quit MenuSAVE FILE
You must SAVE the data files to have your changes available next time you run the Model; otherwise, changes will be lost and you will need to renter the data! Assign file names that are meaningful and can be easily located when you want to use them again. Using dates and descriptions is helpful. The program will always begin with the last file name used. If you change the file name make certain that all the old name is erased.
D. INPUT EDIT CHECKS
The system administrator or the financial officer responsible for the loan portfolio may determine what ranges are acceptable for the servicing evaluation. They would set up the definition file to be used by the staff personnel who would do the actual input the data. There are three types of data checks the system uses:
INPUT EDIT CHECKS
These data field edits can be determined by the user to prevent wrong data being entered accidentally. The ranges that the User wishes to permit are entered directly into the Program. The program will "BEEP" at the User if the data input is not within the predetermined ranges.
CONSISTENCY CHECKS
These are checks built directly into the program. They prevent the User from entering numbers which are not consistent with data that was previously entered. They are cross comparison checks for logical consistency between data variables.
Fields requiring Interest Rates will usually not allow rates greater than 100% or less than 0.0%.
CODE CHECKS
Many of the Data fields require a limited range of input. The user cannot define these fields. They are used by the program to select one of several possible alternatives. These fields usually require the user to enter a "1", "2" or "3". The program will not allow the user to enter any number outside of the required range of data.
E. SYSTEM ENVIRONMENT - Main Menu
SYSTEM ENVIRONMENT Screen {S50} System Environment --> Edit Control Printer Setup Report Contents Screen Colors Tones Quit MenuThis screen defines the system environment. Variables such as screen color and tones can be set to the users particular methods.
EDIT CONTROL Screen {S51} Markov Simulation of Mortgage Servicing System Environment --> Edit Control Printer Setup Report Contents Screen Colors Tones Quit Menu Check Values for Consistency Each Run (Y/N) YCheck Values for Consistency
The Consistency Checks discussed earlier can be turned off. Many of these checks will halt the program execution. If you would rather not have the consistency checks run each time a simulation is performed, then set this field to "N"-No.
PRINTER SETUP Screen {S52} Markov Simulation of Mortgage Servicing System Environment Printer Setup Lines on Page (Before Margin) : 60 Top Margin in Lines : 0 Char/Line (Before Left Margin) : 80 Left Margin in Characters : 0 Supports the IBM Character Set: Y Printer Setup String : 0 0 0 0 0 0 0 0 0 0 (ASCII codes sent to Printer) 0 0 0 0 0 0 0 0 0 0 (each time print operation selected.)Printer Setup String
This is a string of ASCII codes sent to Printer each time print operation is selected. Features such as condensed print can be selected using this item. Check your printer operation guide for the correct codes to use for each feature.
REPORT CONTENTS Screen {S53}
Markov Simulation of Mortgage Servicing System Environment Report Contents Include the following items: Portfolio Group Economic Data N N Firm Data N N Portfolio Data N (n/a) Earnings by Year N Y P&I Float by Year N N Impounds by Year N N Valuation N N Debt Repayment by Year N N Budget Report (n/a) N Monthly Results Data File Y N Annual Results Data File Y N Do Plot Now N N Pause Before Printing Y YREPORTS - Include the Following
The output report switches are set in three separate places. This menu sets the program defaults. You can change the reports to be printed in the Portfolio Section and Group Section of the program. By setting the pause switch to "Y" you have the opportunity to change the settings before generating the reports in the portfolio or group section.
Portfolio Reports / Group Reports
Selecting "Y" in any of these fields will determine what items are output in the final report. The reports can be printed directly or sent to an ASCII data file to be used with your word processor.
Budget Report
This report is only presented in the group section of the program.
Annual Results Data File
Monthly Results Data File
If you chose "Y-Yes" for either the monthly or yearly results data file option on the report contents menu, the program will create ASCII files that can be read into a spreadsheet program. These files are described in Chapter 16. The monthly data file can be very large if the full 360 months simulation was run. Since it is possible to run out of disk space, care should be exercised before using this option. The DOS extensions for these files are *.MON & *.YRS
Pause Before Printing Reports
If "Y" is selected the program will pause before starting the Printed Reports. This will give the user an opportunity to load the paper into the printer or change the selections on the menu.
SCREEN COLORS Screen {S54}
Markov Simulation of Mortgage Servicing System Environment Select the foreground and background colors for each type of display area. Press {ESC} when finished. Fore Back Normal Text on Screen 15 1 Normal Text Data Items on Entry Screen 14 1 Data Val Input Screen Data Field Currently Being Input 15 2 Current Field Being Input Help Information 4 7 A Help Message Error Information 15 3 An Error Message Selection Item on Menu 15 6 Menu Item Being SelectedFast Screen Update (Y/N) Y
Foreground Color Choices: Background Choices:
0 Black 4 Red 8 Dark Gray 12 Light Red 0 Black 4 Red
1 Blue 5 Magenta 9 Light Blue 13 Light Magenta 1 Blue 5 Magenta
2 Green 6 Brown 10 Light Green 14 Yellow 2 Green 6 Brown
3 Cyan 7 White 11 Light Cyan 15 Bright White 3 Cyan 7 White
Foreground Colors
This is the color of the letters and numbers that are shown on the computer screens.Background Colors
This is the background against which the numbers and letters appear. These combinations should be set to assist the user in entering and reading the screen information.Fast Screen Update
If "Y" is selected the program will update the screens very rapidly. The User can decide how fast the screens should change. On certain monitors a fast screen update will cause "snow" on the monitor. Set this switch to "N" if a monitor has "snow".
