Web Based Tool Helps Commercial Real-Estate Lenders

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passIT's Portfolio Reporter software offers lenders an easy-to-use, economical solution for loan portfolio management, portfolio reporting, CRE compliance and stress testing.

Commercial real-estate lenders have a new, user-friendly solution, and what's more, finally a cost-effective one. It's not here yet, but it's scheduled to launch during the first quarter 2009. passIT looks to be a well laid out, nationwide, web-based service, delivering portfolio management for community bank real estate lenders who need to comply with the various CRE requirements including stress-testing.

Dan Walter is the Managing Member for the service. "Today's lender market is about as uncertain and challenging as it gets for commercial real estate lenders," he says. "Yet they (the uncertain markets) represent one of the greatest opportunities and challenges community banks have. What's needed is accurate useful real-time information on individual loans and across the lender portfolio. That's the most effective and efficient way for lenders to manage their portfolio risk profile. This is also a powerful display for the regulators and board of pro-active management."

The product is an economical, web based solution for portfolio reporting and risk management that meets or exceeds virtually all CRE requirements including regulatory compliance and stress-testing. It's 'click of the mouse' efficiently eliminate fire drills and the product specific reports and site are an effective tool to monitor and mitigate risk in commercial real-estate (CRE) operations. And it's particularly useful for lender banks whose heavy concentration of risk lies in this very volatile area.

"Of course," says Dan Walter, "the big players have been able to get this information for years. What these propriety system provide, is to position large banks to capitalize on present and future opportunities, via cross-portfolio information and stress-testing. These propriety system provide portfolio reporting and risk management as well as enhancing the management of regulatory compliance. But the smaller, community lenders have always been without this. Now they can have it, and it's about time. Community banks can stick to what they do best; being local lending sources, without the disruptive bumps in the road that regulatory compliance so often has meant for everyone in the organization, till now. All of a sudden, the playing field is level."

The upside of the CRE business has always been that, well-managed, it has been a source of superior returns. So, the field is a choice one. But the downside has always been that it's also the highest-maintenance and risk area of the bank's lending. According to Walter, with this information technology created for the community bank lender, these aspects are now truly manageable. passIT provides a customizable reporting suite that bring it all together regardless of whose core accounting system you use. Result: a process-management tool at an affordable rate to manage risks and minimize the headaches of compliance. What that means for community lenders is an improved ROA today and in the future when a solid information system will be a must. Who doesn't want something that does that?

Right now, says Walter, the product is in Beta; but it will be out in the first quarter of 2009. If it lives up to Walter's expectations, it's going to have been worth the wait.


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