Audit Engine

Real Estate Loan Valuation & Leverage Audit Lab

Audit Scenarios:
Portfolio Assets:

Asset Parameters

Commercial
Physical Dimensions
10,996 sq ft
2.73x Multiplier
Dual-Track Valuation
$120,000,000
$327,000,000
Loan Financing & Tier Mechanics
$80,000,000
5 Years
Severe Discrepancy / Synthetic Equity Inflation Audit Flag Level: Critical

Lender SFC claims a valuation $207.0M (+172.5%) above independent market appraisal. This inflates apparent borrower equity, compressing perceived LTV from 66.7% down to 24.5%, securing a 250 bps interest concession.

Valuation Delta
+$207.0M
+172.5% vs Independent Appraisal
True vs Claimed LTV
66.7% / 24.5%
Actual LTV vs Reported SFC LTV
Rate Spread Differential
250 bps
$2.00M/yr Interest Differential
Cumulative Term Savings
$10.00M
Total 5-Year Sub-Market Advantage

Valuation Waterfall & Loan Exposure

Independent Fair Market Value (FMV) $120,000,000
Statement of Financial Condition (SFC) Claimed Value $327,000,000
Loan Principal Relative to Asset True Value $80,000,000 (66.7% True LTV)
Metric / Covenant Category Independent Benchmark Bank SFC Claim Forensic Discrepancy
Usable Square Footage 10,996 sq ft 30,000 sq ft +19,004 sq ft (+172.8%)
Total Asset Valuation $120,000,000 $327,000,000 +$207,000,000 (+172.5%)
Valuation Per Sq Ft $10,913 / sq ft $10,900 / sq ft -$13 / sq ft (-0.1%)
Loan-To-Value (LTV) Ratio 66.67% 24.46% -42.21% Artificially Deleveraged
Interest Rate Tier 6.25% (Standard Debt) 3.75% (Concessionary) -250 bps (-2.50%)
Annual Debt Service Interest $5,000,000 / yr $3,000,000 / yr -$2,000,000 / yr
Cumulative Term Differential (5 Yrs) $25,000,000 $15,000,000 $10,000,000 Differential Savings

Portfolio Aggregate Summary (1 Property)

Aggregated Position
Total Portfolio FMV:
$120.0M
Total Portfolio SFC Value:
$327.0M
Total Synthetic Equity:
+$207.0M
Total Interest Savings:
$10.00M
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