Mortgage Loan Valuation with SAP CML

Evaluation of Mortgages with statutory termination right

Correct position data – correct balance data

We developed, in close collaboration with an international insurance company, an SAP CML solution to consider German Civil Code rights of termination puttable rights in mortgage NPV calculations. By this, we are closing a functional gap in the standard SAP CML module that doesn’t recognize the right to cancel terminate a mortgage contract 10 years after full payment, as stipulated by §489 BGB. This missing functionality can result in an overrated market value.

Our Solution

  • No window dressing with overcharged loan-specific NPVs
  • After the evaluation, a Detailed Log with intermediate and final results as of product specific evaluations will be displayed
  • Meet the requirments of financial auditors
  • Results of the product specific calculation are integrated into the SAP reporting

Our valuation approach can be configured, based on borrower and mortgage master data, to individual customer needs. It is seamlessly integrated into the SAP standard: the NPV calculation is done with the same program as before; the standard valuation detail log will be provided, enriched by valuation details of the puttable right. The calculated market value will get saved to the standard SAP data base and is therefore directly integrated into your existing reporting, without any need for further customizing.