The document summarizes upgrades made to an MMS system, including improvements to the risk assessment, scorecard model, and loan application entity. The scorecard model was updated using over 10,000 records and 78 variables to project a default rate of 10% or less. Tier amounts for loan qualifications were also increased. The risk determination layout (RDL) was given a new, improved look. Summary of document requirement changes for start-up businesses, small loans, and SBA 7a program applications are also provided.

1. Upgrades to MMS System

2. Agenda
AutoReview Updated – Improving Risk Assessment
RDL Updated- making it pretty and better in our
workflow!

3. ScoreCard Upgrade!
Model build using a database of 10,415 records
78 variables
Projected default rate of ≤ 10.0% for applications that
pass the scorecard:
Ok to move forward
Denial- Ok to appeal
More comprehensive model
Projecting 10% increase in applicants passing
scorecard.

4. Updates to Loan Application Entity
System calculates:
Total Assets
Total Liabilities
Equity!

5. Tier Amounts Update!
Tier Old Value New Value
Tier 5 $4,000 $5,000
Tier 4 $8,000 $10,000
Tier 3 $12,000 $15,000
Tier 2 $20,000 $25,000

6. RDL old look!

7. New and Improved Look!

8. Let’s Experience the new and
improved Scorecard and RDL!

9. Summary of changes for
documents required
Start Up Businesses- Requirement for formal business
plan for loans over $15,000
Loans up to $5,000- Only ONE Bank Statement
Loans between $15,001 and $25,000 – Do not need a
balance sheet

10. YTD Profit & Loss is accepted on cash basis for loans
up to $50,000
LLS will not be required for business listing the
business property as owned!
Ability to add documents needed to process an
application under the SBA 7a Community Advantage
program.