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KAL_II Loan Servicing Valuation Manual
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The screens are provided to help the user to better understand how the Model determines the different result variables. The screens are also very helpful when locating inconsistent results.
Mon Prob at x Current = Fraction
Del End 0 In 1 Current
0 0.90000 0.96033 0.86430
1 0.03000 0.16033 0.00481
2 0.02500 0.19333 0.00483
3 0.02000 0.74333 0.01487
6 0.00500 0.66033 0.00330
12 0.00167 0.24333 0.00041
Total...................... 0.89252
Divide by Fraction Surviving 0.99221
Fraction of Surviving Loans 0.89953
a. Status Category #1 Month 1 Screen {S6-12131}
Status Category 1 (Del 1 Mon)
Mon Prob at x Delinq = Fraction
Del End 0 In 1 Delinq
0 0.90000 0.03300 0.02970
Total...................... 0.02970
*Divid by Fraction Surviving 0.99221
Fraction of Surviving Loans 0.02993
b. Status Category #2 - Month 2 Screen {S6-12132}
Mon Prob at x Delinq = Fraction
Del End 0 In 1 Delinq
1 0.03000 0.83300 0.02499
Total...................... 0.02499
*Divid by Fraction Surviving 0.99221
Fraction of Surviving Loans 0.02519
c. Status Category #3 - Month 3 Screen {S6-12133}
Mon Prob at x Delinq = Fraction
Del End 0 In 1 Delinq
2 0.02500 0.80000 0.02000
Total...................... 0.02000
*Divid by Fraction Surviving 0.99221
Fraction of Surviving Loans 0.02016
d. Status Category #4 >> 90 Days Screen {S6-12134}
Mon Prob at x Delinq = Fraction
Del End 0 In 1 Delinq
3 0.02000 0.25000 0.00500
4 0.00500 1.00000 0.00500
5 0.00500 1.00000 0.00500
Total...................... 0.01500
*Divid by Fraction Surviving 0.99221
Fraction of Surviving Loans 0.01512
e. Status Category #5 - Foreclosure Screen {S6-12135}
Mon Prob at x Delinq = Fraction
Del End 0 In 1 Delinq
6 0.00500 0.33300 0.00166
7 0.00167 1.00000 0.00167
8 0.00167 1.00000 0.00167
9 0.00167 1.00000 0.00167
10 0.00167 1.00000 0.00167
11 0.00167 1.00000 0.00167
Total...................... 0.01000
*Divid by Fraction Surviving 0.99221
Fraction of Surviving Loans 0.01008
Original Loans....... 10000 Times fraction Going Off Books...... 0.00125 ( 13 Months Delinquent) Equals............... 12.50000 Loans
Del Mon -1 Mon 0 Mon 1 0 0.90000 0.90000 0.89252 1 0.03000 0.03000 0.02970 2 0.02500 0.02500 0.02499 3 0.02000 0.02000 0.02000 4 0.00500 0.00500 0.00500 5 0.00500 0.00500 0.00500 6 0.00500 0.00500 0.00500 7 0.00167 0.00167 0.00166 8 0.00167 0.00167 0.00167 9 0.00167 0.00167 0.00167 10 0.00167 0.00167 0.00167 11 0.00167 0.00167 0.00167 12 0.00167 0.00167 0.00167
Mon #orig x Prob at x Current x Accumulated = Dollar
Del loans End 0 In 1 Fees Owed Fees
0 10000 0.90000 0.96033 18.33 158455.00
1 10000 0.03000 0.16033 36.67 1763.67
2 10000 0.02500 0.19333 55.00 2658.33
3 10000 0.02000 0.74333 73.33 10902.22
6 10000 0.00500 0.66033 128.33 4237.14
12 10000 0.00167 0.24333 238.33 966.57
Prepaying Loans
0 10000 0.90000 0.00667 18.33 1100.00
1 10000 0.03000 0.00667 36.67 73.33
2 10000 0.02500 0.00667 55.00 91.67
3 10000 0.02000 0.00667 73.33 97.78
6 10000 0.00500 0.00667 128.33 42.78
12 10000 0.00167 0.00667 238.33 26.48
Total: 180414.97
Mon Orig Prob at Current Late Current Dollars
Del Loans End 0 In 1 Fees Loans*
0 10000 0.90000 0.96033 19.13 0.35000 57877.04
1 10000 0.03000 0.16033 19.13 920.28
2 10000 0.02500 0.19333 38.27 1849.48
3 10000 0.02000 0.74333 57.40 8533.13
6 10000 0.00500 0.66033 114.80 3790.17
12 10000 0.00167 0.24333 229.59 931.12
Current PMT (Delinq) 0.02822 19.13 1.00000 5398.69
Prepaying past fees
1 10000 0.03000 0.00667 19.13 38.27
2 10000 0.02500 0.00667 38.27 63.78
3 10000 0.02000 0.00667 57.40 76.53
6 10000 0.00500 0.00667 114.80 38.27
12 10000 0.00167 0.00667 229.59 25.51
Current PMT (Prepay) 0.00654 19.13 0.60000 751.27
Collect: 0.65000
* Loans that are 'current', but came in after the late day.
On All Existing Loans---
Monthly Income... 0.25
Inflation........ 1.00333
Fraction Existing 1.00000
Total Loans...... 10000
--- Subtotal..... 2508.33
Borrower Premiums for Extra Services---
Amount Received.. 14817.42
Commission....... 0.37000
--- Subtotal..... 5482.44
Total............ 7990.78
Average P&I Balance.. 1115571.05 times Fraction Usable 0.88000 times Rate Earned.... 0.00500 Earn on P&I Float.... 4908.51
a. b. c. d.
Average Property Hazard Premium
Factors Taxes InsuranceServicing
Inflows-----
1. Current Loans..... 0.60000 259289.99 156351.87 4921.00
2. Delinq Coming Good 0.03333 1866.18 1121.12 35.31
3. Paying Off........ 0.43333 1692.41 1019.70 32.10
4. Foreclosing....... 0.51667 4197.92 2519.72 0.00
5. Average for Month... 267046.49 161012.40 4988.41
6. Beginning Balance... 2493243.24 2306756.76 25000.00
7. less Paid Out....... 0.00 300000.00 24937.90
8. less Refunded....... 16361.11 5899.82 62.10
9. Amount to Earn On... 2743928.63 2161869.34 4988.41
10. times Fraction Usable 0.97000 0.97000 0.97000
11. times Rate Earned.... 0.00500 0.00500 0.00500
12. Earned on Impounds... 13308.05 10485.07 24.19
13. Total = 23817.31
There is no Premium on Servicing (col d.) collected on loans which are in foreclosure. There is also no advance made during the months of delinquency.
Mon Orig Prob at x Service x Inflation = Service
Del Loans End 0 Base Cost Factor Costs
0 10000 0.90000 2.67 1.00333 24080.00
1 10000 0.03000 2.67 1.00333 802.67
2 10000 0.02500 2.67 1.00333 668.89
3 10000 0.02000 2.67 1.00333 535.11
4 10000 0.00500 2.67 1.00333 133.78
5 10000 0.00500 2.67 1.00333 133.78
6 10000 0.00500 2.67 1.00333 133.78
7 10000 0.00167 2.67 1.00333 44.59
8 10000 0.00167 2.67 1.00333 44.59
9 10000 0.00167 2.67 1.00333 44.59
10 10000 0.00167 2.67 1.00333 44.59
11 10000 0.00167 2.67 1.00333 44.59
12 10000 0.00167 2.67 1.00333 44.59
Total: 26755.55
Additional Delinquency Costs
Mon Orig Prob at Added Inflation Delinquent
Del Loans End 0 Costs Factor Costs
1 10000 0.03000 4.00 1.00333 1204.00
2 10000 0.02500 6.00 1.00333 1505.00
3 10000 0.02000 8.00 1.00333 1605.33
4 10000 0.00500 12.00 1.00333 602.00
5 10000 0.00500 12.00 1.00333 602.00
6 10000 0.00500 12.00 1.00333 602.00
7 10000 0.00167 15.00 1.00333 250.83
8 10000 0.00167 15.00 1.00333 250.83
9 10000 0.00167 15.00 1.00333 250.83
10 10000 0.00167 15.00 1.00333 250.83
11 10000 0.00167 15.00 1.00333 250.83
12 10000 0.00167 15.00 1.00333 250.83
Total Marginal Cost: 7625.33
Good Loans 0.90000 0.96033 0.32500 0.28090
Bad Loans 0.90000 0.03300 1.00000 0.02970
Pct Loans: 0.31060
x Loans : 10000
x Cost : 10.00
Inflation: 1.00333
Total Late Notice: 31163.28
Total Delinquent Cost 38788.61
Mon Orig Prob at Paying Unit Inflation = Processing
Del Loans End 0 In 1 Cost Factor Costs
0 10000 0.90000 0.00667 50.00 1.00333 3010.00
1 10000 0.03000 0.00667 50.00 1.00333 100.33
2 10000 0.02500 0.00667 50.00 1.00333 83.61
3 10000 0.02000 0.00667 50.00 1.00333 66.89
6 10000 0.00500 0.00667 50.00 1.00333 16.72
12 10000 0.00167 0.00667 50.00 1.00333 5.57
Total: 3283.13
Hard Costs 350.00 1.00333 351.17
Adjustment for P&I Adv 5979.76
Tax Adj 650.00 less Ref 150.00 = 500.00
Ins Adj 390.15 less Ref 30.15 = 360.00
Recoveries Amount x Pct Rec
Hard Cost 351.17 0.65000 -228.26
Service Fees 238.33 0.00000 0.00
P&I Advances 5979.76 0.90000 -5381.78
Tax Advances 500.00 0.90000 -450.00
Ins Advances 360.00 0.90000 -324.00
Int Pmts Lost ( 2) 916.67
Principal Lost 50000.00 0.01000 500.00
Sum 2223.55
Loans 10000 0.00125 12.50000
Foreclosure Cost 27794.38
Average P&I Advance.. 540319.56
times Rate Paid...... 0.00667
Cost of P&I Advances. 3602.13
Previous Balance
Property Tax Impound.... 2493243.24
Insurance Impound....... 2306756.76
Total................... 4800000.00
times Rate Paid......... 0.00000
Pay on Impound Balances 0.00
Original Number of Loans : 10000
times Fraction Current Last Month : 0.90000
times Probability of Staying Current : 0.96033
(Total Loan Payment 478.31)
(Minus Service Fee 18.33)
times Net Loan Payment to Investor : 459.98
Payment from Current Loans : 3975618.99
Mon Orig Prob at x Total = Delinquent
Del Loans End 0 Owed Payments
1 10000 0.03000 0.16033 919.96 44250.21
2 10000 0.02500 0.19333 1379.94 66697.30
3 10000 0.02000 0.74333 1839.93 273535.59
6 10000 0.00500 0.66033 3219.87 106309.36
12 10000 0.00167 0.24333 5979.76 24251.24
Total 515043.70
Mon Orig Prob at Paying [Payment Balance Extra]=Amount From
Del Loans End 0 In 1 Interest Borrower
0 10000 0.90000 0.00667 459.98 49980.02 458.15 3053888.93
1 10000 0.03000 0.00667 919.96 49980.02 458.15 102716.26
2 10000 0.02500 0.00667 1379.94 49980.02 458.15 86363.52
3 10000 0.02000 0.00667 1839.93 49980.02 458.15 69704.12
6 10000 0.00500 0.00667 3219.87 49980.02 458.15 17886.01
12 10000 0.00167 0.00667 5979.76 49980.02 458.15 6268.66
Total: 3336827.51
## Month Advance
0 -11 459.98 0.00167
1 -10 459.98 0.75000
2 -9 459.98 10000
3 -8 459.98
4 -7 459.98 74746.97
5 -6 459.98
6 -5 459.98
7 -4 459.98
8 -3 459.98
9 -2 459.98
10 -1 459.98
11 0 459.98
12 1 459.98
Sum 5979.76
Mon Orig Prob at Current Accrued Amount
Del Loans End 0 In 1 Payment Advances To Remit
0 10000 0.90000 0.96033 459.98 0.00 3975618.99
1 10000 0.03000 0.16033 919.96 -459.98 22125.10
2 10000 0.02500 0.19333 1379.94 -919.96 22232.43
3 10000 0.02000 0.74333 1839.93 -1379.94 68383.90
6 10000 0.00500 0.66033 3219.87 -2759.89 15187.05
12 10000 0.00167 0.24333 5979.76 -5519.78 1865.48
Total 4105412.96
Mon Orig Prob at Delinq Amount Amount
Del Loans End 0 In 1 Advanced To Remit
0 10000 0.90000 0.03300 459.98 136614.47
1 10000 0.03000 0.83300 459.98 114949.35
2 10000 0.02500 0.80000 459.98 91996.28
3 10000 0.02000 0.25000 459.98 22999.07
4 10000 0.00500 1.00000 459.98 22999.07
5 10000 0.00500 1.00000 459.98 22999.07
6 10000 0.00500 0.33300 459.98 7658.69
7 10000 0.00167 1.00000 459.98 7666.36
8 10000 0.00167 1.00000 459.98 7666.36
9 10000 0.00167 1.00000 459.98 7666.36
10 10000 0.00167 1.00000 459.98 7666.36
11 10000 0.00167 1.00000 459.98 7666.36
12 10000 0.00167 0.75000 459.98 5749.77
Total 464297.54
Mon Orig Prob at Current Accrued Accrued Amount
Del Loans End 0 In 1 Payment Advances To Remit
0 10000 0.90000 0.00667 459.98 0.00 27598.88
1 10000 0.03000 0.00667 919.96 -459.98 919.96
2 10000 0.02500 0.00667 1379.94 -919.96 766.64
3 10000 0.02000 0.00667 1839.93 -1379.94 613.31
6 10000 0.00500 0.00667 3219.87 -2759.89 153.33
12 10000 0.00167 0.00667 5979.76 -5519.78 51.11
Total 30103.23
Mon Orig Prob at Paying Principal Added Amount
Del Loans End 0 In 1 Balance Interest To Remit
0 10000 0.90000 0.00667 49980.02 458.15 3026290.05
1 10000 0.03000 0.00667 49980.02 458.15 100876.34
2 10000 0.02500 0.00667 49980.02 458.15 84063.62
3 10000 0.02000 0.00667 49980.02 458.15 67250.89
6 10000 0.00500 0.00667 49980.02 458.15 16812.72
12 10000 0.00167 0.00667 49980.02 458.15 5604.24
Total 3300897.85
Property Tax Impound In - Month 1
Mon Orig Prob at Current Accumulated Amount
Del Loans End 0 In 1 Impounds Received
Current Loans
0 10000 0.90000 0.96033 50.00 432149.99 432149.99
Delinquent Loans
1 10000 0.03000 0.16033 100.00 4810.00
2 10000 0.02500 0.19333 150.00 7250.00
3 10000 0.02000 0.74333 200.00 29733.33
6 10000 0.00500 0.66033 350.00 11555.83
12 10000 0.00167 0.24333 650.00 2636.11 55985.28
Paying Off
0 10000 0.90000 0.00667 50.00 3000.00
1 10000 0.03000 0.00667 100.00 200.00
2 10000 0.02500 0.00667 150.00 250.00
3 10000 0.02000 0.00667 200.00 266.67
6 10000 0.00500 0.00667 350.00 116.67
12 10000 0.00167 0.00667 650.00 72.22 3905.56
Foreclosing Loans
10000 0.00167 0.75000 400.00 (net) 5000.00
Total In: 497040.82
NOTES
Foreclosing Loans - The $400.00 (net) is calculates as follows:
The mortgagor's last payment was in month 12, one year ago. Therefore two payments were available ($100) in Month 4 when six months of Taxes were paid. We paid $300 or 6 payments at that time. Therefore we were short $200 ($300 - $100). We next paid 6 payments ($300) in Month 11. We were now short 10 months ($500). When the loan was foreclosed we reimbursed the account for 10 months less the two months additional payments that we collected in advance (Section 4.H.3 Extra Months Tax = 2).
From Initial Inflation Monthly
Month Amount Factor Amount
10 50.00 1.00000 50.00
9 50.00 1.00000 50.00
8 50.00 1.00000 50.00
7 50.00 1.00000 50.00
6 50.00 1.00000 50.00
5 50.00 1.00000 50.00
Sum Per Loan................ 300.00
Original Loans.............. 10000
Fraction to Remit On........ 0.92243
Amount to Remit............. 2767297.54
3. Tax Impound Refunded - Month 1 Screen {S6-125C}
Month Payment Inflation Amount
1 50.00 1.00000 50.00
0 50.00 1.00000 50.00
-1 50.00 1.00000 50.00
Original 'Extra' Impounds 100.00
Total 250.00
Fraction Refunding 0.00654
Original Loans 10000
Amount Refunded 16361.11
Mon Orig Prob at Current Accumulated Amount
Del Loans End 0 In 1 Impounds Received
Current
0 10000 0.90000 0.96033 30.15 260586.44 260586.44
Delinquent
1 10000 0.03000 0.16033 60.15 2893.21
2 10000 0.02500 0.19333 90.15 4357.25
3 10000 0.02000 0.74333 120.15 17862.30
6 10000 0.00500 0.66033 210.15 6938.45
12 10000 0.00167 0.24333 390.15 1582.27 33633.49
Paying Off
0 10000 0.90000 0.00667 30.15 1809.00
1 10000 0.03000 0.00667 60.15 120.30
2 10000 0.02500 0.00667 90.15 150.25
3 10000 0.02000 0.00667 120.15 160.20
6 10000 0.00500 0.00667 210.15 70.05
12 10000 0.00167 0.00667 390.15 43.35 2353.15
Foreclosure
10000 0.00167 0.75000 300.00 (net) 3750.00
Total In: 300323.08
From Initial Inflation Monthly
Month Amount Factor Amount
0 30.00 1.00000 30.00
Sum Per Loan................ 30.00
Original Loans.............. 10000
Fraction to Remit On........ 1.00000
Amount to Remit............. 300000.00
Month Payment Inflation Amount
1 30.00 1.00500 30.15
Original 'Extra' Impounds 60.00
Total 90.15
Fraction Refunding 0.00654
Original Loans 10000
Amount Refunded 5899.82
Mon Orig Prob at Current Net Inflation Market Amount
Del Loans End 0 In 1 Prem Factor Penetration Received
0 10000 0.90000 0.96700 9.45 1.00417 0.10000 8258.60
1 10000 0.03000 0.16700 9.45 1.00000 0.10000 94.89
2 10000 0.02500 0.20000 9.45 1.00000 0.10000 141.95
3 10000 0.02000 0.75000 9.45 1.00000 0.10000 567.59
6 10000 0.00500 0.66700 9.45 1.00000 0.10000 220.74
12 10000 0.00167 0.25000 9.45 1.00000 0.10000 51.20
Total In: 9334.97
Balance at End of Month 0 25000.00
Less Premiums Refunded Now 62.10
Amount to Remit to Provider 24937.90
Month Payment Inflation Penetration Amount
1 9.45 1.00417 0.10000 0.95
Total 0.95
Fraction Refunding 0.00654
Original Loans 10000
Amount Refunded 62.10