Automation of 5,000 FSA and Rent Rolls after COVID-19

Lenders and servicers are experiencing a staggering 50x increase in loan reviews and borrower requests

Covid-19 is having a huge negative impact on small businesses. The US government has announced a Paycheck Protection Program (PPP) under which loan is provided to small businesses for continuing their operations during the Corona crisis. The government has set a pool of $349 billion for businesses with less than 500 employees to help businesses in paying for rents, utilities and wages.


The lenders face a daunting task of reviewing the applications as it is a time consuming and extensive process. Requests for forbearance received by the lenders is leading to a skyrocketed increase in the number of loan reviews. Lenders and servicers are facing operational challenges in processing these applications resulting in huge backlog.


As per CCIM, here are the following documents that the banks requests for forbearance requests:

  • A written request with reasons, duration, and any relevant correspondence from tenants.
  • Financial projections for the next 12 months, assuming tenant requests are granted.
  • 2019 year-end property financial statements and rent roll.
  • Year-to-date property financial statements and rent roll.
  • Current borrower and guarantor financials.
  • 2019 and 2020 YTD financial statements of any owner-occupier.

Solution

Clik.ai has helped two of the top ten US CRE financing institutions by helping them implement automated underwriting software in less than 1 week. The software has been a big help in Financial Statement and Cashflow analysis of property financials and understanding changes in rent rolls within minutes for occupancy analysis.

 

The solution extracts information from borrower supplied documents — Operating Statement, Trailing 12 statements, Rent Roll, etc—performs detailed cashflow analysis and checks, and then submits data into client's servicing and salesforce portal. moves it into instant underwriting and portfolio risk analytics.

This has provided much needed relief in terms of increasing the throughput of the process, e.g. one of the banks saw 90% reduction in time taken to upload loan data into portal and financial models. 

Read the whole FSA and Rent Roll automation on our blog, or check out Automated Underwriting Page for more details.