Financial Institutions
Loan Review
We offer a variety of credit underwriting and documentation review services that will give your organization the information needed to enhance the quality of your lending programs, refine your lending policies, and better assess the risk in your loan portfolio. Our professionals include experienced underwriters and credit reviewers who perform reviews of commercial, consumer, and mortgage credit portfolios.
Our credit reviews routinely include evaluation of underwriting with bank policies, regulatory guidelines, risk grading, loan documentation, perfection of security interest in collateral, valuation of collateral including compliance with FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act), and compliance with ECOA (Equal Credit Opportunity Act) and flood requirements.
We can also evaluate risk specifically associated with the bank’s credit portfolio. We identify those loans that have a greater potential for loss based on specific criteria developed through preliminary interviews with management, use of analytical models, and significant lending, collateral, and economic risk factors.
Case Histories
- A community bank, with $250 million in assets, engaged us to perform quarterly reviews of new and existing credit relationships over $250,000. Credits consisted of commercial operating lines and real estate development in a rural community. Reviews resulted in a more defined policy and a greater focus on analysis of borrower cash flows and collateral valuation.
- A credit union, with $400 million in assets, engaged us to perform annual reviews of member business loans, including evaluation of compliance with lending policies and documentation supporting underwriting.
- A commercial bank buying and re-selling commercial loans engaged us to perform an annual analysis of credit portfolios and review loans with higher loss risk factors, including those loans on the bank’s criticized and watch lists.
