Documenting 40 files per year costs $60,000. One avoided guaranty repair on an average loan recovers $900,000. The program pays for itself if it prevents one repair every 15.0 years.
Applied only to files that reach committee with open questions, typically 20 to 25 percent of volume, annual cost falls to $15,000 and the program breaks even at one repair every 60.0 years.
Intermediate figures (from your assumptions)
- Guaranteed exposure: $36,000,000
- Expected defaults (exposure-weighted): $1,440,000
- Expected repair or denial loss: $172,800
Every default value is a user-adjustable assumption, not a Credeity estimate. This calculator states a breakeven and makes no claim about the effect of documentation on guaranty outcomes. You supply the judgment about whether documentation moves repair probability.