Commercial loan review tips that create stability

first_img This post is currently collecting data… The initial process of qualifying a borrower for a loan is built on verifying their ability to repay the loan using the resources they have on hand, but reviewing their finances doesn’t end when the loan gets booked. If anything, 2020 has been a good example of how a borrower’s resources might change throughout the life of the loan.While commercial loan review is not something new, we believe this is an excellent opportunity to evaluate your current procedures and exposure limits. The ultimate goal is to build a loan review schedule that efficiently matches your credit union’s resources with your risks. The time that your staff has to dedicate to loan review is finite so allocating more of your team’s time to the highest risks in the portfolio is essential. Below is a simple example of different review and monitoring levels that might be appropriate for a mid-size credit union.Level I – Payment Performance onlyThese loans are selected for further review only in the event of a missed payment. Exposure limits for unsecured loans are less than $20,000 and secured term loans are less than $75,000. Time needed: minimal Level II – Payment/Score ReviewThese loans are examined annually for payment performance, personal credit scores, and business credit scores. Exposure limits for unsecured loans are $20,000 – $50,000 and secured term loans are $75,000 – $250,00.Time needed: 2 hours per loanLevel II – Full ReanalysisThese loans are re-underwritten with current financials every 1-3 years. Exposure limits for unsecured loans are greater than $50,000 and secured term loans are greater than $250,000. Time needed: 10 hours per loanThis example demonstrates how a credit union should dedicate their resources to a smaller set of loans that represent a larger credit risk to the institution, instead of spreading their time between a larger number of loans that present less risk. In addition to tying up internal resources, Full Reanalysis reviews can present a challenge with member relations. An annual request for updated financials and tax returns from a lender is not usually a busy borrower’s highest priority so it’s important to collect only when necessary.Even when the economy is stable, portfolio monitoring will continue to be a large focus of examiners and auditors. A well planned strategy that is executed consistently will ensure better portfolio outcomes and a smoother exam experience.Whether you have a seasoned book of business or are looking to begin offering business loans for the first time, Lucro Commercial Solutions can help you establish policies that maximize your impact with your borrowers. We can assist with reviews by setting up custom Tickler workflows for your team or take it a step further and outsource your reviews to our dedicated compliance specialists and business loan experts. Visit www.lucro.org/What-We-Do/Lucro-Services to learn more or contact Tami Chandler at [email protected] 5SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Tami Chandler As VP of Underwriting, Tami leads the largest team at Lucro. She and her staff are responsible for underwriting more than $2.5 billion a year in small business loans! … Web: https://www.lucro.org Detailscenter_img This is placeholder text last_img read more


Cleveland St., Oakland meet in Horizon tourney

first_img___For more AP college basketball coverage: https://apnews.com/Collegebasketball and http://twitter.com/AP_Top25___This was generated by Automated Insights, http://www.automatedinsights.com/ap, using data from STATS LLC, https://www.stats.com March 2, 2020 Cleveland St., Oakland meet in Horizon tourney Associated Press center_img LEADING THE CHARGE: Oakland’s Xavier Hill-Mais has averaged 16.7 points and 8.2 rebounds while Rashad Williams has put up 15.5 points. For the Vikings, Algevon Eichelberger has averaged 13.9 points and 6.2 rebounds while Torrey Patton has put up 10.8 points and 5.4 rebounds.SPARKING THE OFFENSE: Hill-Mais has either made or assisted on 42 percent of all Oakland field goals over the last five games. The senior forward has accounted for 38 field goals and 18 assists in those games.SHARING THE BURDEN: Cleveland State is a perfect 6-0 when at least four of its players score 10 or more points. The team is 5-20 when fewer than four Vikings players score in double-figures.LONG-RANGE THREAT: Cleveland State’s Patton has attempted 57 3-pointers and connected on 43.9 percent of them, and is 6 for 16 over the last three games.DID YOU KNOW: Cleveland State has attempted the second-most free throws among all Horizon teams. The Vikings have averaged 21.7 free throws per game. Share This StoryFacebookTwitteremailPrintLinkedinRedditNo. 7 seed Cleveland State (11-20, 7-11) vs. No. 6 seed Oakland (13-18, 8-10)Horizon Conference Tourney First Round, Athletics Center Orena, Oakland, Michigan; Tuesday, 7 p.m. ESTBOTTOM LINE: Cleveland State is set to match up against Oakland in the first round of the Horizon tourney. Oakland won both of the regular season matchups earlier this season. The teams last met on Feb. 13, when the Golden Grizzlies shot 48.3 percent from the field en route to a 79-74 victory.last_img read more