Watch Dan Linder, SVP of RealINSIGHT, share advanced techniques for managing loan origination, and present a live demo of our premier loan management technology – RealINSIGHT.
Introduction of RealINSIGHT Loan Origination Technology
I appreciate everybody’s time today for our RealINSIGHT Loan Origination webinar with some market intelligence and a demo an overview of our system. My name is Dan Linder, I lead Sales and Client Services for RealINSIGHT. Today we’ll be presenting a live demonstration of our asset management technology for commercial real estate as it pertains to our loan origination module. And then overall, the connectivity to our platform, which is extremely important. Today, we’re going to focus on how RealINSIGHT gives you the ability to manage surveil and report on your origination pipeline.
Customize Your Loan Origination Process
Firstly, RealINSIGHT works with large clients and then of course, our parent company, CWCapital, who uses RealINSIGHT very heavily. They’re the number one Freddie Special Servicer in the in the market! Secondly, I want to highlight what makes RealINSIGHT a platform that can really be helpful from an origination perspective. Essentially, what you have, what you are able to do and why this platform is positioned very well is within the system. RealINSIGHT allows you to configure the origination system to manage the products that you sell, with the funding sources that you’re involved in. We also help you evaluate every deal against the exact requirements or investors or clients that you’re involved with. You can screen each deal against the borrower collateral and provide the best possible service to your customer. Most importantly, and this is a key thing, (and you don’t really see this that often in the market) is it does help you centralize all your data in one place, so you’re essentially capturing the full narrative. Some examples of this and we’ll dig into this a little bit in the demo, is you can capture all of your property appraisals, BOV’s inspections, insurance, rent, raw operating statements, budgets, you also have the ability to construct these areas together, where you can go through covenant compliance, budgets, extensions, really all of the specific things that are important to your business. As you’re managing your loan origination or origination process, you’re capturing all of that, and then you can output into any type of ASR, QAR, Pipeline Report, any type of output that you’d like to format; you have the ability to output that into a report out of RealINSIGHT.
Asset Management and Portfolio Management Software
It is important to mention that RealINSIGHT acts, from the asset management and portfolio management perspective, as an overall data warehouse, so all your comps, all of your models, all of your documents, basically, all of the information on specific borrowers is in one place and you can recall all of that data and do any type of benchmarking instantly. This benchmarking can be done with both with your current active portfolio of loans that you have closed and moved into a trackable process, comps, and other deals and repeat borrowers to come up with any type of analysis.
Exposure and Data Stratification in Commercial Real Estate Finance
A big part of the RealINSIGHT platform is data visualization. We do have the ability, across the platform as loans are being managed to report off any type of stratification. It is very common for somebody to log into RealINSIGHT and at a moment’s notice because we’re centralizing all your data. For example, someone may say, “Okay, I need to understand my exposure to retail, and I want to understand across construction loans or across a specific pool or fund, what is my exposure?”. All of that is available as part of our overall system.
Loan Origination Demo
On the origination side you can understand, throughout your group and throughout your company, what were the various different stages of these loans? Are they in closing, origination rejected, started, any type of underwriting status? Now, all these stages and labels are highly customizable, RealINSIGHT is very flexible and will customize the process. It is very nice to be able to say, we have 19 loans that are in started totaling, $557 million. Then you can jump right into that and see the underlying data, and then at a moment’s notice, you can output it into Excel.
Integrating Data and Process Standardization
Questions always come up in terms of how does this information get into RealINSIGHT? How do you get information that isn’t necessarily that accessible? We can input and output information through a type of Excel template. Everyone loves Excel, and we try to make RealINSIGHT as user friendly, especially to the deal teams who just want to get information out, report on it, maybe create a pivot table in Excel. We use controlled Excel or standardized Excel, and it links to the RealINSIGHT database. It’s an Excel integration, that’s a very common way to get data into RealINSIGHT. Because this is just a report that you can drill down and see underlying information, all the dashboards, and all this information gets managed through a process. Depending on what our clients’ processes are, what their pipeline looks like, what we’re able to customize it in RealINSIGHT. We can take your exact pipeline, your exact process, and remap it and remodel it into RealINSIGHT so that when you output it, when you go to print it, when you go to a meeting, when you’re going and discussing with management, you can have RealINSIGHT display and work as you want it. This helps when you are in a situation where you assign multiple different people, let’s say they’re all over the country, they can all log in, see these pipelines, see different statuses of things and again, the columns, the data points, it’s fully customizable. Now you can just make any updates directly in the screen and in Excel. Once updated in the system, everybody gets to see those updates. What’s nice is, is that if you want to get to the underlying information, it’s very easy.
Adding in a new deal
The most common thing that comes from an origination team or underwriters is that a new deal that came across their desk and they will need to get it into the system quickly and easily. You just hit the create new loan and create a ID. So, the system adds it to the database and adds it to the pipeline. Now you can start adding in the information. If you’ve worked with a specific borrower before, for example, then any information there will just populate. This allows for future drill downs into specific borrowers, functioning as a CRM.
Deep Analysis on Borrower and Property Information.
By examining a borrower, we can see comments, tax returns, financials, credit reports, performance, all of that information is getting bucketed under the borrower’s name. The same thing goes for any type of collateral or property level information. Any type of information about the type of loan as you build out the capital stack can be examined and analyzed.
Entering New Loans into RealINSIGHT
A user who must enter data into RealINSIGHT can accomplish this in two ways. You can enter it into the UI, or you can import from Excel. Whichever way you choose to work, we can accommodate your preferences. However, using RealINSIGHT allows you to have that centralized database for all your information.
Moving Through the Loan Lifecycle.
To take a closer look at moving the loan through the process, we will look at a new deal. What you can see is that we are building out an overview of the loan. You have a full hierarchy that you’d be able to then manage a portfolio/asset management process. With RealINSIGHT your process is fully customizable. You can require steps, fields, documents etc. You determine the number of steps that are required and who is responsible. This is the process-based piece of RealINSIGHT or workflow, that allows you to manage a specific process along the loan origination lifecycle.
Utilizing Dashboards to Increase Efficiency
As you are managing this process, you do have the ability to always track these steps via a dashboard. By looking at the exposure to various borrowers, you can determine where in the pipeline you are. You also can analyze across the origination process and evaluate where the next steps are, what is open, who’s responsible and how many days since something gotten done. There are several action plan steps or workflow steps that you can look at, from cancelled, to approved.
The status of “ready to approve” is important across the entire system to move a loan to closing or the next step. Maybe you need to approve a closing package or an underwriting model and having that workflow allows you to increase efficiency and focus on what is important.
Our pipeline report can be fully customized, and we can take your Excel models, your logic, and assist you in helping you develop the report. We know that your models are different and unique to your business so our Client Success team will work with you to recreate your processes and reports. Through our onboarding process, we create an input/output process with your current models, where the data populates out based off of what the originators or the underwriters have submitted. At this point you will have the ability to do any type of calculation analysis.
Reporting at the Touch of a Button
With our customized reports, your brand, your logo, and all of your information is displayed on the report. These reports can take very complex calculations and layer it into your models.
For example, if you had a simple term sheet that you are happy with, RealINSIGHT would give you the ability to analyze your loans based on different scenarios. The integration with excel allows your teams to be comfortable with the platform, because it takes it keeps them in a process that they already are so used to.
RealINSIGHT and Complex Debt Structures
No company has the exact same way to structure their business, and some firms have some very complicated debt structures such as securitized component mezzanine future funding.
RealINSIGHT allows you to structure the capital stack, as well as the exact way your deal was financed. For example, if you had a portfolio where a loan was originated, you can view the deal that is the roll up of the loan, the property and then any type of equity or borrower equity in terms of how that loan got financed. This allows all your reporting to be accurate and highly customizable.
Reporting on Securitized Loans
When you are reporting on securitized loans and one of your loans is CMBS or CLO, RealINSIGHT lets you layer in that data so that you can see the full capital stack. This allows you to review that information as it updates from a third part source. That means that your origination or underwriting team does not have to manually update it. You will have the ability to log into a system and see all your direct lending private debt as well as securitized information in one place. You could have multiple different portfolios, so that you can roll everything up and examine your loans by direct lending or securitized fund.
It is so important to have all your information in one place. Without centralizing your data, it is very difficult to track all your information effectively and structure the data so you can make meaningful decisions. Breaking your data out by pool, fund, investor or by borrower allows you to have deep insight into what is working and what is not working.
With the reporting features you can analyze the data at the touch of a button for internal, or external use. Again, reporting is highly flexible, highly customizable, showing you your deal status, your sources and uses capital stack, any type of narrative, and it’s telling you each piece of that deal. The first lien, the senior mezzanine, the junior mezzanine with any operating data and then rolling it up to the property level information, with everything geocoded, a visual of the capital stack and the rent roll.
RealINSIGHT makes your data actionable from so many different areas throughout the system, as you warehouse it as you as you put it together. Everything is fully customizable and it’s very common for somebody to hand us a pipeline report and ask for us to recreate it. Our client team takes that information and models it and will assist you in learning how to enter into the system so that you have to spec your exact pipeline.