PREPROJECT

The main goal of this file is to translate what we receive from de DT to FS’ language (clean
data) and construct the Project Table Input. For the Project Table Input we need the following
data:

Important Notes for the following steps:

1. When including lines do it in the middle of the file!
2. The minimum amount of INE codes possible to increase accuracy
3. Relatively to areas, when having land input land area, if not built area

1. Clean the Data

- Before to start with the Preproject file, create the Risklines files with the Unique Collateral
tab (see the first step of Risklines).

- In the “1.UniqueCollateralsDTSheet” tab of the Preproject file, change the “Project Name”.

- Insert the number of the rows in the macro and execute it.

- Bring the information by “Unique Collateral” from Risklines file. The first grey columns are the
data from DT (Risklines)

- Clean the data (FS clean data):

 Collateral ID In Use (it depends on the format)

 DT typology. Depends on the number of typology columns of the DT. If there are too
many columns, fill in with “-“.
 DT Cadastral Reference in Use. It has 20 digits (it could have only 14 if only the plot is
defined).
 DT Parish. It must be written in the same way as on the “MunicipalityInfor” tab. If the
values in the “INE code” column appear as an error, find the correct Parish. Use the
“DT Manual Parish” column and “ManualParishAux” to correct it. In the case that DT
does not specify the Parish, use the Zip Code from DT and “ZipCodeAux” tab.
  DT Appraisal Value. If we don’t have the value, it should be “1”. Check all values are
with the same unit. For the appraisal date, use the “Weighted Avg Date” tab for the
dates that we don’t have the data.
 DT Area. If we don’t have the value, it should be “1”. Check if all values are with the
same unit. We can also obtain the area by CatastroTool in the following steps.
 DT Construction year. Only fill in if we have the data from the DT.

2. Location Assets

There are different ways of locating an asset: with the cadastral reference, google maps and
INE CODE (it is only an approximation).

A. Catastro

To create the input table:

1. Check all the “FALSE” values in the column “Cadastro can be used?”. If any Cadastral
Reference data is correct but appears “FALSE” change it to “TRUE”.
2. Use the macro “Create Cadastro CSV” from the “UniqueCollateralsDTSheet”. The goal is to
create a new table in a new file with two columns: “Collateral ID” and “Cadastral
Reference”, so click on it and a new file with the table will be created.

3. Save the file (Ctrl+S) and close it. The file will be saved in G:\Projects\DD\002-Tools\
Catastro.

Two output tables must be created: ProjectDetails.csv and ProjectCoordinates.csv

(Coordinates Always first)

 To create the ProjectDetails.csv:

1. Go to DD->002_Tools->Catastro->cntrl+shift+rightclick-> open PowerShell window
here
2. Command (write “cmd”) and write:
“catastro details G:\Projects\DD\002-Tools\Catastro\Puppy.csv G:\Projects\DD\002-
Tools\Catastro\PuppyDetails.csv”

 To create the ProjectCoordinates.csv:

3. Go to DD-> 002_Tools->Catastro->cntrl+shift+rightclick->open PowerShell window
here
4. Command (write “cmd”) and write:
“catastro coordinates G:\Projects\DD\002-Tools\Catastro\Puppy.csv G:\Projects\
DD\002-Tools\Catastro\PuppyCoordinates.csv”

! To open the two output tables, follow “Open CSVs” (annex) instructions.
 Once the output table are opened, copy the data in the “PasteCadastralCoordinates” and
“PasteCadastralDetails” sheets from the Preproject.

B. Googlegeo Tool

Used when the Cadastral reference does not work. The procedure is the same as the
catastro.

To create the ProjectOUT.csv:

1. Create the input table. Take the file from another project and copy the data from the
current project (columns A-F)
2. Save the input table in G:\Projects\DD\002-Tools\GoogleGeoTool\Files
3. Go to DD->002_Tools->GoogleGeoTool->cntrl+shift+rightclick->open PowerShell window
here (! make sure you are not inside the folder “files”)
4. Command (write “cmd”) and write: “GoogleGeoTool geocode /i:G:\Projects\DD\002-
Tools\GoogleGeoTool\Files\Yellowstone.csv/o:G:\Projects\DD\002-Tools\
GoogleGeoTool\Files\YellowstoneOUT.csv /t:500”

! To open the output table, follow “Open CSVs” instructions.

Once the output table are opened, copy the data in the “PasteGoogleTool” from the
Preproject.

To check output:
1. In the “Manual Reject column” write FALSE if the “LocationType” column is “Rooftop” or
“Range_Interpolated”; and write TRUE if it is “Geometric_Centre” or “Aproximate”.
2. In the “Manual Type” write “Google Maps” if the “LocationType” column is “Rooftop”;
and with “GoogleMaps (Aprox.)” if it is “Range_Interpolated”, “Geometric_Centre” or
“Aproximate”.

C. INE Code

When Catastro and GoogleGeo Tool do not work, do it through “INE CODE” - check the
columns “DT parish 1” and “DT parish manual” and linked to “MunicipalityInfor” sheet.

3. Mapp Typologies

1. On “2.DTvsDD Map” tab include the unique typologies from DT. Then, map the DT
typologies with the FS ones that are in the “Typologies” tab. The manual columns are the
orange ones.
2. On “1. UniqueCollateralsDTSheet” check manually the typologies. To do this, filter the
FALSE values for each of the following columns (one by one): Min Area, Max Area, Min AV
and Top 10 Lowest and Top AV.
3. If a collateral has some wrong typology, correct it on the “Manual Reviewed Final” area,
column “DD_TypologyID”.

4. When they are checked, write TRUE in the “Manual checked (TRUE/FALSE)” column.

4. Create Project Table Input

Use the macro “Create Project Table” to create the input table. The new table will be saved in
the “04. Real Estate Analysis” folder.

Note: Within the DT we will usually receive latitude and longitude for each asset. Despite this,
we will always use the latitude and longitude that we obtain from Catastro Tool.

5. Query Developments

Development: a group of assets with the same characteristics, within the same location, built
or funded by the same agent. It can be a way of grouping assets and make a “apples to apples”
comparison

 SQL (clean input table):

- Save the last project query, so change the name of “dbo.project” to the last project.
(ej:“dbo.projectTalos”)
- Clean the content the last user left in the server when he used the program. To do this, go
to Databases/QGIS/Tables right-click on “dbo.input” and ! “Select Top 1000 rows”.
- In the first half (dividing the screen horizontally) you will have to remove all the current
content from “[QGIS].[dbo].[Input]” to the left, and type “truncate table” instead. It will
look like this:

SELECT [ID] truncate table [QGIS].[dbo].

,[Longitude] [Input]
,[Latitude]
,[LocationAccuracy]
,[Area]
,[DD_TypologyID]
,[ConstructionYear]
FROM [QGIS].[dbo].
[Input]

- Press “F5” (equivalent to enter in SQL) to execute your new command and your server will
now be ready.

 ACCESS (upload input data):

- Open “Access SQL” file

- Right-click on “dbo_Input1” and now click on “Import” and then “Excel”. The following
pop-up window will appear

- As highlighted in red, you will have to do two things here:

i. Browse the file you want to input from your computer (Project Table).
 ii. Click on “Append a copy of the records to the table” and choose “dbo_Input1” from
the drop-down list. Then, press ok.

! NOTE: if it does not work, before starting this procedure, follow the “Access path when
dbo_Input does not work” instructions (Annex) and then try it again.

 SQL (execute query)

- In the SQL, go to Databases/QGIS/Tables right-click on “dbo.input” and “Select Top 1000

rows”. ! Note that if the input table has more than 1000 collaterals, you must add more
rows.

- Go to DD\Advisory&CREtools\Queries SQL and open “QueryDevelopmentIDs02” file.

- Press “F5” (equivalent to enter in SQL) to execute the query

- Once the query is executed, could be that the previous project table was saved with other
name (because you did not want to lose it for another project), the query will probably
show an error saying that the project table could not be created because it did not exist.
Here you only need to go to SQL and update the database:

After this, you will see the new dbo.project table within the folder “Tables” in QGIS is ready
to be downloaded.

- To export the table, go to output file (dbo.project) open top 1000; select all + right click
Save as CSV in Real Estate Analysis with the name “ProjectName_ProjectTable_Output”

! To open the output table saved, follow “Open CSVs” instructions.

- Paste the Project Table Output in Preproject (“ProjectTable_CorrectedDevelopme” tab)

6. Check Developments

The format of development must be “Dev_x”

In Preproject, go to “Devs checkup” tab, check if any development has different typologies,
parish or INE code. If it is the case, they must be separated. For example, if a Dev_5 has two
different parish, then separated as “Dev_5_1” and “Dev_5_2”. Residential apartment, parking
and storage can have the same development

COLLATERAL VALUATION

The objective is to calculate the market value of the collaterals. There are two methods that
we must implement: Closing & Asking and Property Records.

The procedure to obtain the market value and consolidate it in our files for each method:

 Closing & Asking: Tercero B -> AVM -> CollateralValuation -> Risklines
 Property records: PropertyRecords -> CollateralValuation -> Risklines

Closing & Asking - Tercero B (3b)

Around 40% of the appraisal value of a portfolio is appraised through this method.
! Currently we only use Asking values.

In SQL there are three tables related to 3B:

 Dbo.TerceroB: contains one line for each of the collaterals.

 Dbo.TerceroBgrouped: contains one line for each 3Bgroup (The collaterals have been
grouped specifically for 3B, these are not the developments).
(To see the full grouping criteria included in the T-SQL code, please refer to
“TerceroBSQLquerycriterias” in G:\Projects\DD\Advisory&CREtools\Queries SQL).
 Dbo.terceroBRelationsTable has the mapping between the each of the collaterals and
the previously mentioned groups.

Step 1: the starting point is the Project Table, so you need the table in SQL. Once this is done,
you can go and execute “dbo.TerceroB”:

- Go to: “G:\Projects\DD\Advisory&CREtools\QueriesSQL” and double click on

“QueryTerceroBinputv6” field.
- Press F5 to execute the query. The query creates the three TerceroB tables
- Update the SQL database
- To export the tables, go to output files (dbo.TerceroB, dbo.TerceroBgrouped and
dbo.TerceroBRelationsTable) and open them with “select top 1000 rows”
- Select all + right click and Save them as CSV in “0443. Asking&Closing 3B” folder with the
names “ProjectName_NBO_TerceroBTable”, “ProjectName_NBO_TerceroBGroupedTable”
and ”ProjectName_NBO_RelationsTable”.

Step 2: Sanitary check

- Open TerceroBRealtions Excel file

- Pick some collaterals (you could pick these randomly, but it would be better to check some,
say the top 3).
- Check if they have the same following characteristics:
 Same place
 Same typology
 Similar size
 Same latitude and longitude (two digits before the comma and three after it).

Step 3: Prepare the asking input file

- Open TerceroB Grouped Table in Excel - ! following the “Open CSVs” instructions
- Delete ClosingPrices rows (currently only use Asking prices)
- Save it as “ProjectName.csv” in G:\Projects\DD\002-Tools\3B

Step 4: Create asking output file (the comparable assets to be used for the AVM)

1. Go to G:\Projects\DD\002-Tools\3B
2. Ctrl+shift+rightclick-> “open PowerShell window here”
3. Command (write “cmd”) and write:
“3BCrawler (Name of input file).csv (Name of output file)_Output.csv”

NOTE: The maximum number of comparable assets that the 3B query will give us is 30 for
asking. This does not mean that it will always find 30 comparable assets.

ASKING - AVM File

- Copy the asking output table into the “Comparables” tab.

- In the “Project” tab, copy the ProjectTable from Preproject.
- In the last column (“Code”) manually fill in the Auto ID from the 3B Relations table.
- In the “Valuation” tab, bring the data from Preproject Unique Collateral in the manual
columns.
- In the “Valuation” tab check the MV of assets that in column “BN” (“Discount Over
Appraisal (2)) have big discounts given to the AV. The goal is to check possible outliers and
understand whether the reasoning behind is correct by looking at how we classified the
asset in Pre-project. If we decide that we finally don’t want to value the reference asset
 through asking, but through property records, we just must type TRUE in column “M”
(Manual Rejected?).
- In the last columns are the out puts that will have to be copied to the Collateral Valuation
file

Property Records (NOT UPDATED) X

- Insert/delete rows with the macro

- In the “AssetInfo.” Tab, copy the Project Table from Preproject

- In the “Marketing Periods (2)” and “Marketing Periods Old” tabs, fill in the two first
columns
- In the “FS Propery Records Valuation” tab (it is the main one) manually fill in the first
columns (before the black ones) with the data from Preproject.
- The last columns of main tab are the outputs that will have to be copied to the Collateral
Valuation file:

Collateral Valuation File

- In the “Project” tab, update the name of the project

- In the “Lot3_Stat_ClosingAsinkg Com” tab, update the first four columns with the data from
AVM file
- In the “Lot4_FS_Propery Record” tab, update the all columns with the data from Property
Records file
- In the “Location&Statistical” tab, update all the black columns with the Project Table. Then
fill in the manual columns (the orange ones) with the data from Preproject. If we have some
WIP collaterals (working in progress), but we don’t know the % of construction progress,
then we assume 50%
- In the “Collateral Valuation_Full L (N)” tab (it is the main one):
 Insert or delete rows using the macro
 Fill in the first columns with the data from Preproject.
 There are four columns from the Risklines file, so we will fill in these columns when the
Risklines is done.

 The “Market Value Adjusted” and “MV Capped” columns are the main columns of the
Collateral Valuation file.

 The “Development” and “MV Adjusted” must be copied in the Risklines file.

RISKLINES

We use Risklines file to identify the unique relations between loans and collaterals and create
the Loan Groups (LG). Also, to calculate those representative values of the portfolio that we
need to show in the presentation.

A LG is the pooling of all loans and collaterals that are related, so one LG has all the loans and
collaterals that are related with each other.

! Each portfolio is different, so the following instructions may vary depending on it.

1. Prepare the file

We start from the DT file to create the Risklines file.

First, check if the file contains a tab with the unique collaterals. If this is not the case, we must
create it. So, we create a new tab in the file with the name “UniqueCollaterals” and add all the
information about collaterals. ! Once this is done, the Collateral Valuation can be started in
parallel.

The file should contain the following information tabs (other than auxiliary tables):
 Collateral – Loan
 Unique Collaterals
 Loans
 Participants
 Insolvency
 Judicial
 Debtor Summary (if the DT does not contain this tab, create it)
 LG Summary (new tab with data from the above tabs)

To add the new FS columns in the above tabs and the auxiliary tables use the
“ProjectClean_Risklines” file.

2. Collateral – Loan tab

FS columns may vary depending on the project, but usually are:

 Perimeter: FALSE in case that seller excludes any loan
 FS collateral ID and FS Loan ID
 Loan Group: use the “AuxLGs” tab to check the LGs. ! We can neither have one collateral in
two LG, nor one loan in two different LG.
 Asset Value: from DT column
 % AV Allocated: % AV allocated to loan
 OB Allocated to collateral: OB depends on “Loans” tab, then multiply by the % AV allocated
 Lien: this information can normally be provided from DT in two different ways:
- Lien 1 / Lien > 1: change the data to 1 or 2
-1/2/3/…
 OB 1st Lien Allocated: depending on the data format:
- Lien 1 / Lien > 1: consider only OB Lien 1
- 1 / 2 / 3: ! consider rank 1 and its consecutive ranks, i.e. if you have a collateral with rank 1
and 2, both will be OB 1st Lien, but if you have 1 and 3, 3 will be excluded. To calculate it,
you can use “LienAux” tab.
 % OB Allocated: % OB allocated to collateral
 AV Allocated to loan: AV depends on “UniqueCollaterals” tab, then multiply by the % OB
allocated
 MV Allocated to loan: MV depends on “UniqueCollaterals” tab, then multiply by the % AV
allocated
 MV Capped Allocated to loan: MV depends on “UniqueCollaterals” tab, then multiply by the
% OB allocate
3. UniqueCollaterals tab

FS columns may vary depending on the project, but usually are:

 Perimeter: depending on “Collateral-Loan” tab
 FS Collateral ID: depending on “Collateral-Loan” tab
 Loan Group: depending on “Collateral-Loan” tab
 AV: from DT column
 OB Allocated: sum the value from “Collateral-Loan” tab
 OB 1st lien Allocated: sum the value from “Collateral-Loan” tab
 Market Value: copy the data from Collateral Valuation file
 MV Capped: minimum value between total OB and MV

4. Loans tab

FS columns may vary depending on the project, but usually are:

 Perimeter: FALSE in case that seller excludes any loans
 FS Loan ID
 Loan Group: depends on “Collateral-Loan” tab
 Total OB
 Type of debtor: depends on “Participants” tab
 Origination, Maturity and Default dates: check the data from DT for errors such as
“31/12/9999”. In this case, in FS columns appear “-“
 OB 1st Lien: sum the value from “Collateral-Loan” tab
 AV Allocated: sum the values from “Collateral-Loan” tab
 MV Allocated: sum the values from “Collateral-Loan” tab
 LTV with MV: Total OB divided by MV Allocated
 In BK?: FALSE or TRUE. Extract values from “Insolvency” tab
 Judicialized?: FALSE or TRUE. Extract values from “Judicial” tab

5. Participants tab

FS columns may vary depending on the project, but usually are:

 Perimeter: depends on “Loans” tab
 FS Loan ID: depends on “Loans” tab

6. Insolvency and Judicial tabs

FS columns may vary depending on the project, but usually are:

 Perimeter: depends on “Loans” tab
 FS Loan ID: depends on “Loans” tab
 BK/Judicial phase: use AuxBKPhase (maybe it is hidden) to consolidate the FS name phase
 Terminated?: if the BK/judical process is already finished

7. Debtor Summary

If there is no debtor table in the DT file, create a new one and copy the information from DT
about debtors.
FS columns may vary depending on the project, but usually are:
 Perimeter: depends on “Loans” tab
 Type of Participant: Company or Individual
 Total OB: sum the values from “Loans” tab
 OB 1st lien: sum the values from “Loans” tab
 AV: sum the values from “Loans” tab
 MV: sum the values from “Loans” tab
 MV Capped: sum the values from “Collateral-Loan” tab
 Ranking: by MV Capped
 Top Debtor?: depends on the project select x number of top debtors
 BK? – BK Phase – Judicialized? – Judicial phase : use data from “Loans” tab and
“AuxLegalDebtor”

8. LG Summary

A LG is the pooling of all loans and collaterals that are related, so one LG has all the loans and
collaterals that are related with each other.
Information it should contain:
 Loan Group: manual
 Perimeter: depends on “Loans” tab
 Loan Group type: UNSEC / 1L-1C / ML-1C / ML-MC / 1L-MC
 Type of Debtor: use “AuxMainDebtor” tab
 Debtor ID: use “AuxMainDebtor” tab
 # Loans
 # Collaterals
 OB
 OB 1st Lien
LEGAL
Step 1. Mapping tabs

These tabs are used to map the judicial and insolvency phases of the DT with those of FS
 Mapping FCL tab
1. In the first columns copy unique values of judicial phases from DT

2. Find each phase of the DT in the “DocumentType” tab and copy it in the “Document”
column
 Mapping Bankruptcy tab

Step 2. Red tabs

 Contract Perimeter tab
Loan level tab.
Fill in the grey columns with the data from DT. If there is no information about abusive
clause, floor clause, IRPH and first residence, fill in with FALSE.
 Debtor Perimeter tab
Debtor level tab.
Copy the identification of the debtors from Risklines.

Step 3. Bankruptcy
Insolvency debtors level tab.
Copy the information from Insolvency Risklines data

Step 4. Current FCL

Judicialized loan level tab.
This table calculates the time that legal process takes to auction/award/possession for each
loan.
Copy the information from Judicial Risklines data

Step 5. FCL tab

Loan level tab.
Copy the data about Loan Groups and OB from Risklines
Step 6. FCL-Loan tab
Loan level tab.
Only the grey columns with black letters need to be filled in with the Risklines data.

Step 7. New FCL tab

Collateral-loan relations level tab.
This tab contain Lien, AV, ubication of the asset (INE code) and Loan Group information copied
from Risklines. When the table has all the information, sort by Lien and AV:
 Select the table and go to Data -> Sort:

Step 8. Judicial Phase by Loan Group

When above steps are already finished, go to “Judicial Phase by Loan Group” and update the
pivot table.

UNDERWRITING

Strategies are defined on a loan group level, packed into different strategy buckets
(REO/POA/DILR/DPO).

The “bucketing” will depend mostly on the type of debt, BK phase, Judicial phase, LTV and
junior liens. Each bucket is indexed to the UW Matrix, which is predefined, with % of
probabilities for each strategy and timings of their own.

Example:
Introduction

STRATEGY BUCKETS

Judicial strategy:

 REO

Extrajudicial strategies:

 POA: Power of Attorney

POA is a legal document that entitles one or more people to act on behalf of another
person for certain purposes. An agreement is reached with the debtor to give us his asset,
authorizing us to sell it.

 DILR: Deed in Lieu ReoCo

An agreement is reached with the debtor to give us his asset and the debt is forgiven. The
asset goes on the ReoCo’s balance sheet, so that it can be sold.

 DPO: Discounted Pay-off

The debt is discounted in exchange for the remainder being paid. The idea is that the
debtor refinances to play the remainder (if the LTV is slow, <80%). In this strategy we have
no MP and no risk related to asset.

JUDICIAL PHASES in the UW file:

NO ACTION DEL
DOCUMENTATION DEL
LAWSUIT ADMISSION S<Auction
CLAIM MANAGEMENT S<Auction
AUCTION S>=Auction
AWARD S>=Auction
POSSESSION S>=Auction
PHYSICAL POSSESSION S>=Auction

UW file
! The OB should be distributed among the different buckets, so at the end, when all the tabs
are complete, check the “Aux Matrix” tab.

UW – LoanGroups tab

It is the main tab. It is a Loan Group level tab.

Bring the data from Risklines (LG tab) to the manual columns.

Collaterals tab

Unique Collateral level tab.

Bring the data from Collateral Valuation file.

Judicial tab

Copy the pivot table from Legal file (“Judicial Phase by Loan Group” tab)

Participants tab

Bring the data from Risklines to the manual columns.

BK tab

It is an auxiliary table with the BK phase per each debtor

ANNEX
Open CSVs

1. Select the file, right click on the mouse.

2. Select "Open with" -> "Notepad".

3. In Notepad, Ctrl + A to select everything

4. Copy and paste into a new Excel file

5. Press Ctrl and select "Use Text Import Wizard"

6. Select following options:

 Step 1

 Step 2
 Step 3: Select “General” data format for all fields except for latitude, longitude and
INE code that we must select “Text”.

Click on “Advanced”. Decimal separator sholud be “.” And Thousand separator “,”

Click “Ok” and then “Finish”

Access path when dbo_Input does not work

Step 1: Go to External Data -> New Data Source -> From Database -> From SQL Server

Step 2: select “Link to the data source by creating a linked table” and click on OK
Step 3: Go to “Machine Data Source” and then “New”

Step 4: Select “User Data Source (Applies to this machine only) and Next >
Step 5: select “ODBC Driver 17 for SQL Server” and Next >

Step 6: In the “Server” field fill in “fs-es-mgmt01\finsolutia” (the other fields do not matter
what name we give them). Next >
Step 7: select “With Integrated Windows authentication” and Next >

Step 8: select “Change the default database to:” and “QGIS” option. Next >
Step 9: select “Perform translation for character data” and Finish