Warehouse entity - warehouse settings business rule
The warehouse settings business rule is available to any warehouse that has been setup as a "securitised warehouse" and allows the user to set the parameters that are used in order to determine if the warehouse will participate in funding an application/loan. It also contains the investors that will be allowed to participate in the warehouse funding and the funding margins they will participate at.
At this point funding by a securitised warehouse only exists on premium funding.
Within the asset class
1. Navigate to Configuration -> Organisational Structure -> Warehousing Entities
2. Select the specific warehouse that you would like to capture the business rules details for.
3. Go to Actions hamburger menu -> Business rules -> Warehouse settings
Effective Date: The date the business rule will be applied from.
Single obligator maximum exposure % of loan portfolio:
Maximum weighted average of loan receivable % of loan portfolio:
Large loan receivable classification:
Maximum large loan receivable calculation:
The above are all parameters that are used in order to determine if the warehouse will participate in the funding and if so how much of the application/loan they will fund. Each time funding is requested, the calculations are run through every loan in the portfolio that has a closing balance. See the following spreadsheet which demonstrates how the calculations are done.
Users will be able to select the investors that will participate in the warehouse funding and the funding margins that will be applied to each investor. The total participation % must = 100%.
Investor: The investor that will participate. It is important that the investors that will participate are setup to belong to the investment category "warehouse funding" AND that the investment category is setup to have rates based on "BBSW".
Participation percentage : The percentage portion of the warehouse funding portion that the investor will fund. Example if a loan amount is $100,000.00 and the rules determine that the warehouse will fund $65 000.00 of the total loan amount and an investor participation percentage is 10% then that investor will fund $6 500.00
Funding margin: The margin that will be added to the BBSSW rate in order to get the interest rate the specific investor will invest at. The margin can be a positive value that will be added to the BBSW or a negative value that will be deducted from the BBSW. The final interest rate will never be allowed to be negative.
Type: The class at which the investor will participate. Class A investors receive money after a write off before class B and so on,
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