Funding Option

Funding Option

The funding option will determine who will provide funding for the funding quote and the details for the funding.  

Once you have completed the details on the quote maintenance page , you will need to complete the funding option page and calibrate and lock the funding quote before it can be

  1. If the funding will take place through a warehouse, before it can be added to a warehouse draw
  2. If the funding will NOT take place through a warehouse, before it can be marked as ready to fund so that the tranche notes will be created.

Always remember that if a loan or endorsement is reimported from Odyssey, any existing funding options will have to be recreated.


1. Navigate to the Clearmatch Admin Portal and select the "Clearquote" menu item.



2. Once in Clearquote select the "Funding Option" menu item



3. You will be presented with a page that will automatically list the quotes that have been created in the last 90 days:





You can also navigate directly to the funding option by clicking the "fund" / "funding option" buttons or links on any of the other pages.


4. Use any of the filter options to refine the list of quotes:

 
5. The small icon on the right of the menu will slide the menu back and forth to give you more viewing space on the screen.  


6. Click in the the blue "quote" button  will navigate the user to the quote maintenance page where the user can view all the details and make the changes.  


7. Click in the the green "fund" button   will navigate the user to the funding option page where the user can and update the funding option details.  



Funding Option Page




1. There are tabs at the top of the page  that will allow the user to navigate to:
  1. The policies linked to the funding quote
  2. The settlements linked to the funding quote
  3. The funding option
  4. The funding quote 
  5. Reports specific to the funding quote

2. Clicking the  icon will expand the page to present a list of the policies. Clicking the  icon will present the quote repayment schedule. Clicking the  will present the repayment schedule based on the funding details saved.


3. Tranches

      If the funding is being done by the warehouse, there will be only one tranche on the first settlement date.

      If funding is not being done through the warehouse there will be a tranche for each settlement date .

      Each tranche is then split into a possibly 5 funding lines.
      

The funding lines will be displayed depending on the following:

"Funded By" = purchaser interest, "Funds  Supplied" = warehouse, will appear if the funding is being done by the warehouse
"Funded By" = seller interest, "Funds  Supplied" = investors BOTS, will appear if the funding is being done by the warehouse and the seller interest > 0 and the business rule to create tranche notes for seller interest is set to True
"Funded By " = seller interest, "Funds  Supplied" = investors manually , will appear if the funding is being done by the warehouse and the seller interest > 0
"Funded By" = seller interest, "Funds  Supplied" = balance sheet, will appear if the funding is being done by the warehouse and the seller interest > 0 and the business rule to create tranche notes for seller interest is set to True




"Funded By" = funding interest, "Funds  Supplied" = investors BOTS, will appear if the funding is NOT being done by the warehouse 
"Funded By " = funding interest, "Funds  Supplied" = investors manually,  will appear if the funding is NOT being done by the warehouse 
"Funded By " = funding interest, "Funds  Supplied" = balance sheet, will always appear

Where allowed, you will be able to change the amounts, example if funding is not taking place through the warehouse you can change the amount allocated to "investors BOTS" and allocate all or some of it to "investors manually" etc.



Note the following which applies only for tranche notes that will be created:

Funding percentage: The percentage of the "amount incl comm and fees" that will be funded. This will determine the "Tranche Note Amount" which is the amount that will be funded by tranche notes. You are also able to update the tranche note amount which will in turn adjust the funding percentage

Tranche note amount: The amount that will be funded. The tranche note amount will automatically be calculated when you enter the funding percentage, OR you could adjust the amount manually which will in turn calculate the funding percentage.

Tranche note start date: The start date of the tranche notes.

Preferred Payment Day: This is the day that the the repayments of the tranche notes would like to be made. This is only adjusted under the following conditions:

  1. the repayment would like to be made on the last day of the month. The month of the first payment date is the 30th of the month or perhaps the 28th February. You don't want the future repayments to be on this day even though the first payment is, you want them to be on the last day of the month. You then supply the preferred payment day as 31 and the platform will adjust the future repayments to be on the last day of the month, unless moved by a weekend or public holiday.
  2. The first payment date is aligned with the borrower NEXT instalment date, however the NEXT borrower instalment date has already been adjusted because it fell on a weekend or public holiday in the month supplied.  So although the first payment is aligned you don't want future payment on that day but rather a different day.  Example

Borrower instalments

10 Jan
10 Feb
12 March
10 April
10 May

Funding option first payment date is 12 March
however you don't want the tranche note future repayments to be 12 April and 12 May you want then to be 10 April and 10 May. You then supply the preferred payment day as 10


Tranche note first payment date: The date the first repayment will be made on the tranche note.  Note that the "start date" of the tranche note will always be:
= settlement/disbursement date – (the number of days before the disbursement is due that the tranche note is created, (currently set to 1))

Tranche note rate: The rate that will be used on the tranche note. This defaults to the rate as per the secondary credit rating selected on the quote for sellers interest. For purchasers interest the rate is calculated using the warehouse rules.

Tranche note term: The term of the tranche note. The tranche note will not be allowed have a payment after the final payment of the quote, within an acceptable grace period.

   
4. Clicking   will recalculate the funding details for the tranche notes, recalculate the funding values at the top of the page, and also regenerated the "cash flow summary" and the "net exposure summary reports" at the bottom of the page.


5. Clicking   will recalculate the funding details for the tranche notes, recalculate the funding values at the top of the page, and also regenerated the "cash flow summary" and the "net exposure summary reports" at the bottom of the page AND flag the quote as calibrated. Once a quote has been flagged as calibrated it can then be locked and made ready for funding. It is only necessary to flag a quote as calibrated once all calibration is complete. Once a quote has been flagged as calibrated, Odyssey will automatically be updated to indicate that calibration is complete.


6. Clicking   will lock the funding quote. If the funding is being done through the warehouse, the funding quote will be able to be added to a draw at this stage. If the funding is not being done through a warehouse, the funding quote will be able to marked as "ready to fund" so that the tranche notes can be created.


7. If the funding is taking place through a warehouse, clicking    will allow tranche notes to be created.


8. From the "cash flow summary" and the "net exposure summary" report you will be able to:
  1. Save the report to pdf format
  2. Save the report to Excel format
  3. Email the report 
This can all be done by selecting the icons above the report



6. Clicking the  icon will allow the user to modify the filter options to run the reports. See the explanation on overrides under the quote page for more details.


7. Clicking on the report or clicking the  icon will enlarge the report in a separate window so it is easy to view. Clicking back on the page will return you to the normal view.

 

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