Expense Allocations

When you are pricing a new loan, you can define the loan's anticipated origination and monthly servicing expenses on the Pricing Opportunity page.

You can select the Expense Allocations panel to enter expenses. When you enter values, the Save and Cancel buttons become active.


Pricing Opportunity Expense Allocations.

Origination

The Origination expenses include:

Origination Complexity
Select an option from the drop-down list. Select Complex for SBA loans, participation loans, or unique clients.
Percentage of Principal
Enter the appropriate percentage in this field if part of a loan's fees is based on the original loan amount. When you enter a percentage, then the equivalent dollar value appears.
Percentage of Fees
Enter a value in this field to calculate an expense amount as a percentage of the fees that are applied to the loan.
Dollar Expense
Enter amounts in this field for expenses such as paying for a client's appraisal or paying a commission for the loan.

Monthly Service

The Monthly Service expenses include:

Servicing Complexity
Select an option from the drop-down list. Use the complexity setting to calculate the monthly servicing expense to allocate to the loan based on the loan type.
Dollar Expense
Enter an additional amount in this field to assess as a monthly service expense.
Parent topic: Pricing Opportunity