Patent ID: 7454383

Claim:
A method for assessing a loan portfolio comprising a plurality of non-performing loans, said method comprising the steps of: assigning at least one characteristic to each loan included within the portfolio including at least one of size of outstanding balance, nature of collateral security, lien information, historical payment performance, litigation status, and underwritten valuation; identifying a current milestone for each loan included within the portfolio at a selected time of assessment from a series of predefined milestones, wherein the series of predefined milestones represent different stages that non-performing loans experience prior to resolution including at least one of not contacted, in negotiation, scheduled for approval, approved, approved delinquent, closed, closed delinquent, paid-in-full, and foreclosed; creating a business plan for each loan included within the portfolio including planned collections and timing of collections for each loan; electronically segmenting the loan portfolio based on the at least one characteristic assigned to each loan; electronically determining planned collections for each loan for the selected time of assessment; electronically determining actual collections for each loan for the selected time period of assessment; electronically populating a spreadsheet identifying the current milestone and a cumulative variance between planned collections and actual collections at the current milestone for each loan; and electronically determining a contribution of a portfolio segment to an overall cumulative loan portfolio variance, wherein the portfolio segment includes each loan included within the portfolio having an assigned characteristic that correlates with a loan characteristic selected by a user for analysis.