RiskSpan, a technology provider of innovative risk management and data analytics for securities, loans and private credit, added residential transition loans to its Edge platform. This enhancement enables loan and private credit investors to upload, model and analyze cash flow projections for fix/flip, ground-up construction, bridge and other loans with distinctive RTL features.
The integration of RTLs into the Edge platform offers investors flexibility and precision in managing and evaluating complex loan portfolios. The new capability permits lenders to model several loan features characteristic of RTLs, including:
- Draw Schedules on Undisbursed Loan Amounts:Investors can now account for staggered disbursement schedules, allowing for detailed modeling of cash flows based on actual loan drawdown patterns.
- Extended Maturity Dates and Extension Fees:The platform accommodates assumptions around extension of maturity dates, ensuring investors and lenders can extend terms as necessary and model the impact on cash flows.
- Interest-Only Contract Terms:The platform supports loans with interest-only payment structures, providing the ability to model and project cash flows accurately.
- “Dutch” Loan Features:RiskSpan now supports loans where interest is charged on both disbursed and undisbursed loan amounts, offering a comprehensive view of interest accruals and cash flow projections.
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“By adding RTLs to the Platform, we are providing loan and private credit investors with powerful tools to navigate the complexities of these unique loan products,” Bernadette Kogler, CEO of RiskSpan, said. “This enhancement aligns with our mission to equip our clients with the most advanced and flexible solutions for managing and analyzing their loan portfolios.”
