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US 2011/0213731 A1Published application
Techniques for identifying high-risk portfolio with automated commercial real estate stress testing
AssigneeBanker's Toolbox, Inc.
InventorsDaniel Cho, Kyoung S. Choe, Josh Andrews
Life of this patent
Estimating the term…
Abstract
Techniques for providing automated commercial real estate stress testing are provided. The automated stress testing techniques use loan information and publicly available commercial real estate data to model the performance of commercial real estate loans. Banks can use the automated techniques to more efficiently and accurately predict the performance of the commercial real estate portfolios.
Claims29
A system for performing stress testing on commercial real estate loans, the system comprising:
- a commercial real estate stress test (CREST) server configured to automatically perform real estate stress testing for commercial real estate, wherein the CREST server is configured to perform the following steps:
- receiving loan information for a commercial property from a bank;
- retrieving real estate trend data from an external data source;
- estimate various values for use in automated commercial real estate stress testing based on the loan information from the bank and the real estate trend data from the external data source;
- and
- a commercial real estate (CRE) data store connected to the CREST server and configured to store data for the CREST server.
3 more elements
A system for estimating a net operating income for a property, the system comprising:
- a commercial real estate stress test (CREST) server configured to automatically perform real estate stress testing for commercial real estate, wherein the CREST server is configured to perform the following steps:
- receiving loan information for a commercial property from a bank;
- retrieving real estate trend data from an external data source;
- determining an estimated present value of the commercial property based on an appraised collateral value for the property included in the loan information received from the bank and property value trend information included in the real estate trend data retrieved from an external source;
- determining an estimated current cap rate of the commercial property based on cap rate information included in the loan information and cap rate trend information included in the real estate trend data retrieved from an external source;
- determining an estimated net operating income of the commercial property based on the estimated present value of the commercial property and the estimated current cap rate of the commercial property;
- and
- a commercial real estate (CRE) data store connected to the CREST server and configured to store data for the CREST server.
5 more elements
Dependencies are inferred from the claim text.