FAS 166 Gain on Sale Model
GLS has released a new version our Gain-On-Sale calculator which now incorporates amortization schedules along with updated methodology for a more detailed analysis of prepayment speeds.
The GOS calculator, available with our 7a loan settlement service or as a stand-alone product, now provides users with full amortization schedules for both the servicing asset as well as the discount on the retained balance. Two amortization schedules are included for each loan, one being based upon a level yield amortization, the other using a sum of the years digits approach.
Highlights of our GOS calculator are:
- Consistent with FAS 140 requirements.
- Amortization schedules using both level yield and sum of the years digits.
- Provides accounting entries necessary to record the loan sale.
- CPR analysis now incorporates the likelihood of default and voluntary prepayments based on industry, state, gross margin, maturity, and guaranty percentage.
- Provides a FAS 157 Level 2 valuation, weighted average life, weighted average prepayment speed and discount rate for the net servicing right.
For further information on our loan settlement, gain-on-sale and valuation services, please contact Rob Herrick at 216-456-2480 ext. 144, or via e-mail at [email protected]