Real-time Settings and Controls – GENERAL RISK

Real-time Settings and Controls

  • 10 Levels of Sequential Risk Management (LSRM) at 6 Stages
  • Automated (no physical input except criteria) up to and including LSRM 9 (See: Legals > CHAIN FREE® Loans -Process > (11) Finance Docs Received from Customer)
  • Macro Risk – Stop (S)
    – Stop All Stages together
  • An algorithm (being constructed by Dept of Applied Economics, University of Cambridge) to prevent the Funding Limit being exceeded and to maintain 10% headroom).
  1. Before Application – Stage 1

    1. Systems automatically exclude Postal Sectors. LSRM 1:
      1. With unexceptable perils (e.g. risk of flooding).
      2. With Falling house prices (+/-5% over proceding 3 months).
  2. Application Form Settings – Stage 2
    1. To change Minimum/Maximum MV.
      LSRM 2: Financial Risk.

      1. Add/Remove Postal Sectors.
      2. Add/Remove Local Authority Area.
  3. Financial Risk 1 – Stage 3 
    1. To set LTV Rate (%) for specified LA Area selecting Option 1 with 1% Fee or Option 2 with No Fee.
      LSRM 3: Financial Risk.
    2. To set number Application Approval Limits selecting either LA Area (or Estate Agent firm) i.e. too many potential customers vs. LTV.
      LSRM 4: Financial Risk.

      1. Stop all S
    3. To see how Customers Opinion MV, DataSource, RICS and Sale Price compare (performance monitoring) over selected calendar period.
      1. Select Local Authority Area or
      2. Select Estate Agent firm.
  4. Property Risk – Stage 4
    1. To set house max. no. characteristics by Local Authority Area (Type, age, number of rooms etc)
      LSRM 5: Property Risk.
    2. Estate Agent
      1. Local Economy, Local Employment etc
      2. High Confidence Level, if on market etc.
    3. DataSource
      1. Confidence Level, if on market etc.
      2. Restrict
      3. Return Administration Fee
    4. Approval of RICS
      LSRM 7: Review Valuations.

      1. Characteristics
      2. Local Economy, Local Employment etc
      3. Restrict
      4. Return Administration Fee
  5. Financial Risk 2 – Stage 5 
    1. By either LA Area (or Estate Agent firm)
    2. Instruct AVM
      1. Restrict
      2. Stop S
    3. Instructing RICS
      LSRM 6: Queued Valuations.

      1. Restrict
      2. Stop S
      3. Return Administration Fee
    4. Before Finance Docs. sent
      LSRM 8: Queued Finance Docs. for Customers to sign (Product Offers).

      1. Restrict
      2. Return Administration Fee
    5. Before Finance Docs. signed by Albani
      LSRM 9: Queued Finance Docs. for Albani to sign.

      1. Restrict
      2. Return Administration Fee
  6. Customer Behavior – Stage 6
    1. To monitor performance (Applications Vs. Valuations, Applications Vs. Finance Docs. sent out, Applications Vs. Finance Docs signed etc.) over selected calendar period. 
      LSRM 10
      :

      1. Select Local Authority Area (or Estate Agent firm).