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Dual Risk Rating

Increase transparency in your credit risk rating activities and reduce process jams

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Corporate borrowers, loan officers, and client-facing relationship managers face increasingly complex lending and compliance challenges today and often do not have the appropriate tools or data to analyze them effectively.  

With RMA Dual Risk Rating, an affordable commercial solution is now available. RMA Dual Risk Rating enables banks to evaluate both the borrower and the loan to achieve greater granularity in classifying and managing credit risk - allowing you and your team to have more confidence in your lending. 

 

 

Why Are Banks Moving to RMA Dual Risk Rating?

  • Affordable - Affordable yearly subscriptions that are more cost-effective than other similar tools. 
  • Built by Bankers -  We have a deep pool of knowledge among our member banks and we tapped into it to build this tool
  • Adaptable - We have two flexible deployment options: RMA-hosted web-based platform or embedded in your third-party commercial lending software.
  • Intelligent Insights - Complete portfolio reports on risk concentrations and the ability to benchmark against other banks.

The Scorecards

  1. CRE – Income Producing 

    This scorecard is for commercial or multifamily projects that are built and leased out. Most banks have commercial lending in their portfolio. Risk categories include leverage, borrower strength, asset quality, and market risk.

  2. CRE – Construction 

    This scorecard is for commercial real estate projects still under construction. Risk categories include leverage, borrower strength, refinance risk, asset quality, and market risk. 

  3. C&I - Commercial & Industrial

    This scorecard is for any type of operating company in any industry. Most banks lend to operating companies and will find this scorecard useful. Risk categories include coverage, liquidity, leverage, industry, and company. 

  4. Small Business 

    This scorecard can be used for U.S. Small Business Administration (SBA) 7(a) loans and other loans primarily based on a small business credit score.

  5. High Net Worth Individual

    This scorecard should be used when an individual or family is providing substantial support to a project or company. Risk categories include coverage, liquidity, leverage, and borrower characteristics. 

  6. Public Debt Rated Companies

    This scorecard can be used for participation or direct loans to companies that have a debt rating from the major agencies. The advantages of using this scorecard include consistency and transparency with risk rating across the commercial portfolio.

  7. General

    This scorecard is a template that includes the same structure as the other scorecards but allows for evaluating credits not well-served by the other scorecards. Inputs and risk ratings are stored and can be part of the portfolio reporting.

  8. Facility

    This scorecard is used to evaluate the collateral coverage for each loan. Multiple sources of collateral of any type can be used. The scorecard will discount the collateral value based on generally acceptable discount rates, and then compare total collateral to the outstanding balance.

Reduce loan processing time and increase transparency.

Speak to our experts about your needs and how we can help you and your institution. 

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