CLFP TERMS EXAM REVIEW QUESTIONS AND
CORRECT ANSWERS
◉ Cross-functional accountabilities.
Answer: Origination & sourcing of transactions
Complete and factual underwriting information
Complete and accurate documentation
◉ Portfolio Segmentation.
Answer: Division of the portfolio and market data into subsets or
groupings consisting of specific characteristics and concentrations
for further analysis.
◉ Portfolio Characteristics.
Answer: The data elements used in portfolio segmentation and in
calculation of performance indicators.
◉ Portfolio Performance Indicators.
Answer: Statistical measurements used to compare historical norms
to business goals and identify trends in a portfolio.
◉ Typical portfolio characteristics.
, Answer: Customer, industry, equipment, geographical, source,
vintage, approval type, program type, contract type, term length,
runoff, roll rate
◉ Credit Risk Indicators.
Answer: Delinquency, default, collection & recovery costs
◉ Financial Risk Indicators.
Answer: Yields, margins, term, runoff rate, residual value
performance, early payoff, servicing costs
◉ Business Risk Indicators.
Answer: Market competition, concentrations, cost of capital, staff,
state specific legal remedies
◉ Performance Indicators - Portfolio Reporting.
Answer: Delinquency % = 30-60-90 day Delinquencies ÷ Total
Receivables
Residual Value Performance = Total residual value collected ÷
Estimated booked residual value at inception
◉ Regulatory Considerations for Collectors:
CORRECT ANSWERS
◉ Cross-functional accountabilities.
Answer: Origination & sourcing of transactions
Complete and factual underwriting information
Complete and accurate documentation
◉ Portfolio Segmentation.
Answer: Division of the portfolio and market data into subsets or
groupings consisting of specific characteristics and concentrations
for further analysis.
◉ Portfolio Characteristics.
Answer: The data elements used in portfolio segmentation and in
calculation of performance indicators.
◉ Portfolio Performance Indicators.
Answer: Statistical measurements used to compare historical norms
to business goals and identify trends in a portfolio.
◉ Typical portfolio characteristics.
, Answer: Customer, industry, equipment, geographical, source,
vintage, approval type, program type, contract type, term length,
runoff, roll rate
◉ Credit Risk Indicators.
Answer: Delinquency, default, collection & recovery costs
◉ Financial Risk Indicators.
Answer: Yields, margins, term, runoff rate, residual value
performance, early payoff, servicing costs
◉ Business Risk Indicators.
Answer: Market competition, concentrations, cost of capital, staff,
state specific legal remedies
◉ Performance Indicators - Portfolio Reporting.
Answer: Delinquency % = 30-60-90 day Delinquencies ÷ Total
Receivables
Residual Value Performance = Total residual value collected ÷
Estimated booked residual value at inception
◉ Regulatory Considerations for Collectors:
