The intent of this report is to give the reader a background on the framework and methodology of the specific complex model set available within the Evolv valuation suite to robustly predict the behavior of commercial real estate loans. In addition to describing the structure components of the model suite and its underpinnings, the main purpose of this report is to give the reader a background on the framework and methodology employed in its construction. A major focus of this white paper is on the structure of these models and including explanations of the role of borrower and loan characteristics as well as economic variables and lifecycles. Primatics' CRE model covers all property types for commercial real estate loans and this model is primarily based on loan-level Age-Period-Cohort (APC) scoring framework, an advanced modeling technique in use for lending today. This Evolv report discusses the following:

• The overall APC structure and how the structure incorporates time-to-expiration lifecycles and macroeconomic impacts
• How the models are implemented in the Evolv platform and how the model uses predicted probabilities along loan terms to generate cash flows
• Understand how these cash flows can be used for a variety of business purposes, including valuation, accounting, stress testing or regulatory capital
• Learn how cash flows can be aggregated in numerical measures and how they generate losses for business and reporting, including stress testing and other scenario analysis

For more information on our CRE mortgage modeling platform or how EVOLV may be able to help your bank, please contact us directly at info@primaticsfinancial.com.