Optimizing Your Loan Review Process

Loan review is a key component to your Credit Union's credit risk management program and should serve as an early warning system. Although, no one can predict exam findings, a strong loan review process enables management to proactively address weaknesses in the various levels of an institution’s credit initiation, underwriting, and classification. In this seminar, we outline the common loan review shortfalls and provide best practices to enhance your program.

Covered Topics:

This session addresses the key elements of an effective loan review system, including:
  • Regulatory perspectives about loan review
  • The expanding role of loan review
  • Common mistakes, including: improper segregation of duties; improper frequency; scope and depth of reviews; ineffective communication; incorrect risk rating assigned to Credit Facility; insufficient analysis to support the risk rating
  • Recommended best practices, including: Effective Targeted Reviews; accuracy and timeliness of risk grade, including NPA, impairment, TDR, charge-off status; involvement in the workout process and decisions impacting ALLL; entity level reviews of centralized functions (e.g. appraisal, workout, OREO); loan review’s role during a regulatory exam

Who Should Attend?

This informative session will be useful for Loan Review Officers, Credit Analysts, Compliance Officers and other personnel involved in the loan review system.