Loan Review Services

Our credit risk and loan review services overall are designed to meet current regulatory standards, and to assess whether the institution has processes in place to maintain an accurate problem loan list through its everyday credit risk monitoring systems and processes. We analyze the institution’s loan portfolio, or targeted portions thereof, to identify high risk loans based on borrower creditworthiness, secondary sources of repayment such as collateral and guarantors, loan structure, loan performance and management’s loan portfolio management practices, including monitoring of concentrations of credit. 

We also assess the adequacy of and adherence to internal credit policies and loan administration procedures, including underwriting, cash flow analysis, loan accounting (accrual/charge off) and workouts, and test compliance with applicable laws and regulations.

Our loan review services assess whether any selected loan:

• is appropriately risk rated with the rationale for such adequately documented,
• complies with the institution’s various loan policies, and
• is supported by underwriting that fully documents the loan’s purpose, repayment program, reliable and adequate sources of repayment, collateral values, and any loan covenants.

Collateral documentation can be tested on selected loans as agreed upon by management. Credit and collateral documentation, and policy exceptions noted, are provided to management throughout the review. 

Our written reports provide management and the board of directors with an objective, independent, and timely assessment of the overall quality of, and trends in, the loan portfolio, or that portion that was subject to our review. Our reports may be used to support Allowance for Credit Loss data, and general credit-related systems and processes in place for regulatory and external audit purposes. Give us a call today.