One of the core services of MBL Risk Analytics (MBLRA) is the independent review of Commercial Loan portfolios. If you use a third-party firm or underwrite your commercial loans in-house, the federal and state auditors strongly recommend or require an independent review of the loan portfolio annually. We work with our clients to provide sound, third-party, commercial loan portfolio analysis and can tailor the review to meet the specific needs of each client. Our partners count on us annually to examine their portfolios and prepare them for any regulatory reviews. Together, we develop a customized scope of work to meet specific needs and areas of concern.
Typical key points of each review are:
- Determining loan compliance with covenants and documentation requirements;
- Verifying annual credit review and risk rating has been completed satisfactorily;
- Continuous loan review and monitoring of troubled loans;
- Troubled debt restructuring and workout options for problem assets;
- Evaluation of documentation standards;
- Review of initial underwriting and/or annual review, to ensure adherence to policy guidelines.
- Verifying security interest perfection
The final product is a complete and comprehensive loan review package outlining any items of concern and the recommended remedy for each. If we have identified any areas of concern, we then work with our client to take corrective action to verify the credit file is in proper order for the regulatory audit. As an additional service, we can also be retained to be present during regulatory audits to meet with the federal and state auditors as an advisor to the credit union.