Axe Loss and Recovery

ACP provides a solution for collecting event and loss data and for managing workflows for doubtful and non performing credits.

Remedial workflows are triggered for doubtful and non performing credits including all relevant details and circumstances, dates, etc. and their related recovery actions.  The loss data collected can be later used to develop LGD and recovery related models.
 

Credit events can be linked to facilities and different event types can be configured as needed, for example “past due”, “score downgrade”, “late payment”, “impairment”, “default”, “record date” etc.     Credit event data can be either captured manually within ACP or interfaced from other systems.

A recovery action is related to one or more credit event(s). Recoveries usually start with “commercial recovery” (or cure), then “restructuring” and finally “mortgage sale”.

Once a loan loss event is triggered, all the follow-up can be managed via dedicated and fully configurable workflows, all the way through to recovery and interfacing with the core banking system if need be.  The recovery event workflows can be different according to individual event circumstances such as “type of client”, “client history”, “client track-record”, “amount past due”, “circumstances such as first recovery, second...”, “first notice”, “escalation level”, “amount to recover”....

All recovery types can be captured into ACP (mortgage sale, default, loan restructuring, etc.).  Recoveries are linked to facilities.  Their description and recovery circumstances are logged such as “recovery date”, “recovery amount”, “cost of recovery”, “recovery status”...

The institution’s internal recovery policy can be configured with total flexibility which gives full independence in case of policy changes.

The calculation of actual exposure at default and archiving of realised recoveries is also possible.

In addition, the modular and integrated nature of our solutions enables lenders to back test their credit ratings and approval processes by having in the same system the collections/recovery processes and data as well as the whole historical archive of a given loan application and its related collateral files.