Warehouse Financing
SSI’s
Warehouse Lending System (WLS) is an adaptation of SSI technology for the warehouse financing and lending business. All SSI core functionality is available. WLS manages the entire lending process from initial facility execution to limits management and interest accrual.
WLS facilitates the whole loan financing business by:
- Providing counterparty management; centralizes all customer data
- Managing warehouse lines; provides real-time risk management with respect to the monthly roll process
- Tracking fundings, sales and rolls, monitoring concentration limits and applying eligibility rules
- Providing customizable reporting, defining separate criteria per line
- Calculating accrued finance charges and advance percentages
- Handling mark-to-market and margin call processes
- Supporting multiple asset classes such as residential and commercial mortgages, auto and student loan financing
- Easily integrating with proprietary or 3rd party loan valuation models for automated mark-to-market
Maintain Customer Data
WLS centralizes all customer data, including financial metrics and links to electronic documents, enabling a rigorous customer review and monitoring process. Our rule-based workflow ensures that each conforms to management policies regarding overall lending limits and financial health.
Manage Warehouse Lines
WLS captures all salient features of a lending facility, including lending limits, advance matrices, haircuts, and collateral eligibility. Real-time risk monitoring includes views of over/under collateralized lines, outstanding margin calls, and aged/delinquent collateral. WLS boasts a flexible interface where users can specify financing arrangements at the line level; in addition committed and uncommitted balances can also be tracked at the line level.
Track Fundings, Sales, and Rolls
New funding requests can be loaded into WLS using its built in tape-cracking functionality, or directly uploaded via the
SSI Customer Portal. WLS provides an automated interface where fundings are set up automatically, and files are loaded through an automated mechanism (
via LoanTalk).
Loan deliveries can be automatically screened against negotiated eligibility criteria; WLS workflow automatically compares facility limits with line utilization before funding is authorized. Finally, customized funding schedules and notifications are automatically sent to borrowers, and collateral release letters are generated to streamline the final funding process.
WLS provides a customized solution to the complex problem of monthly position rolls. Users can easily segregate loans being rolled from new deliveries, compare before-and-after utilization vs. defined sub-limits, and apply aging penalties to rolls. Full transaction history ensures that appropriate loan and line level tracking can be performed.
Interest Accruals
WLS allows daily rates to be uploaded from market data feeds, and real-time accrual calculations are automatically calculated on nightly funded positions. Full daily and monthly accrual history is retained, allowing customers to receive detailed reporting on position and interest charges.
