Real-time Settings and Controls

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, 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 (Price Bands, type, age, number of rooms etc)
      LSRM 5: Property Risk.
   2. DataSource
      1. Confidence Level, if on market etc.
      2. Restrict
      3. Return Administration Fee
   3. 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).