The critical first step in the pricing process for a quote or credit application is automatically assigning a residual value to each asset on the quote or credit application. LoanPath accomplishes this by maintaining a set of residual policies that tell the system how to assign residual values to an asset class or a specific model.

LoanPath’s Residual Management Module assists in the administration of these policies which may contain:

  • Matrices of booked and billed residual percentages
  • Matrices of residual adjustments that adjust the residual value based on equipment configuration, application, and usage
  • Formulas that specify how the matrices are used in computing residual values
  • Eligibility parameters (or constraints and thresholds) that determine whether the system will automatically assign a residual value for the transaction.

A manual residual evaluation is required for all assets ineligible for an automatic residual assignment.

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