Expected Loss Simulation

Financing Costs

Financing costs are currently excluded from the expected loss simulation. The DOM is also no longer used in the loss simulation because it was only used to estimate unfunded financing costs.

Simulation Assumptions

Input Instructions

• The mean valuation should be input without commas. For example, $281,716 should be input as 281716.
• Please input all percentages as decimals, otherwise the calculations will be inaccurate. For example, 4.9% should be input as .049.
• The valuation below will use the mixed model results. The weighting is used for the first standard deviation provided. For example, 73% of the time is assuming 4.9% standard deviation, otherwise 15% standard deviation.
• To use a normal distribution, set the valuation standard deviations to be the same number. The weighting won't matter in that case, so use any number as a placeholder.