Creating an automated covenant

You can create an automated covenant, track, and monitor the status of covenants, and receive notifications when the status of a covenant changes on a deal.

Note: Ensure that:

• Full access permission is provided to the Deal Management:

• Portfolio Page & Deal Creation

• Deal Details

• Deal Overview

• Covenants

To create an automated covenant, perform the following steps.

1. At the top-left of the page, click Portfolio.

2. On the Portfolio page, click Deal ID or View for the required deal.

3. On the left navigation menu, click Covenants.

4. On the New Covenants page, click + New Covenant.

5. On the New Covenant dialog box, in the Type drop-down, select Automated.

After selecting Automated, the following Covenant Name drop-down is displayed.

6. In the Covenant Name drop-down, from the available options, select the applicable covenant name.

Field Description
Name

The deal rule name such as.

  • Minimum Whole Loan As-Is Current Balance NCF DSCR

  • Maximum Whole Loan Current Balance Appraisal LTV

  • Minimum Funding Source Current Balance NCF DSCR

  • Maximum Funding Source Current Balance Appraisal LTV

This field is mandatory.
7. After selecting the covenant name, enter the following information.

Field Description
Funding Source

Select the funding source name that the covenant is to be evaluated against. Funding source names are populated from the deal's capital stack.

Selecting a funding source is not applicable when selecting "whole loan" covenants.

At-Risk Threshold The risk threshold value for a rule.
Failure Threshold The failure threshold value for a rule.

Status Change Notification Recipient(s)

One or more required recipients email addresses . The recipients receive the status change update notification by email.
8. Click + New Covenant.

A message is displayed indicating that the new covenant is created successfully.