Date: May 15, 2013
Time: 3:00pm - 4:30pm
A credit union’s loan-review program is an essential key to a strong credit-risk-management program. Examiners are spending a considerable amount of time determining whether you have a strong, dynamic loan-review program. Specifically, they are looking for a qualified, independent assessment of your overall credit-risk-management processes, including loan-grading integrity and uniformity, adherence to policies, underwriting quality, and ongoing account management. Loan review must provide comprehensive narrative reports to management and the board detailing the adequacy of each component and an overall assessment of the level and direction of credit risk.
Two case studies – a commercial loan and a real estate loan – will be presented which will cover each important step in the loan-review process. You will receive worksheets and a reporting process that you can implement at your credit union.
Continuing Education: Attendance verification for CE credits upon request
How to conduct a loan review step-by-step
- What loan review should cover on an annual basis
- What information should be gathered from the credit union for each review
- How to select appropriate risk-based loan samples
- Retail loan underwriting samples (residential mortgages, home equity, and consumer loans)
- What information should be documented for the review?
- What are the key components that should be evaluated in the review?
- Commercial and CRE samples
- What questions should be asked and analyzed as you work through each loan file?
- Adequately documenting your review and justifying the grade assigned for each credit
- Communication process with management and loan officers throughout the process
- How do you build the narrative summary report?
- TAKE-AWAY TOOLKIT
- Loan review worksheets for commercial and real estate loans
- Retail loan underwriting samples
- A reporting process
WHO SHOULD ATTEND?
This informative session is designed for loan review officers, lending staff, auditors, and compliance officers.
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