Purchasing and selling a portion of Commercial Loans (known as participations or syndications) has become an effective way for financial institutions to either grow or shrink their Commercial loan portfolio. MBL Risk Analytics (MBLRA) has been evaluating participation for both purchasing and selling since the beginning of this emerging trend.
Although many commercial lenders have quality internal credit departments or outsource to an underwriting firm such as MBLRA, it is always prudent and recommended that any potential participation purchase be reviewed by a third party. We provide two services specifically relevant to commercial loan participation: underwriting and analysis of potential purchase opportunities and preparation of loan participation opportunity memos for commercial lenders selling participation.
Each loan participation purchase package includes:
- Pre-screening of any participation purchase opportunity (at no cost to the Client);
- Comprehensive financial analysis prepared to client-specific policies and guidelines;
- Comprehensive borrower and guarantor analysis;
- Full review of all third-party reports, including credit reports, appraisal reports, and environmental reports/questionnaires;
- A detailed loan package containing all the above in an intuitive, easy-to-understand format tailored to the specific requests of each client partner.
The final product is a complete and comprehensive loan package showing MBLRA-prepared project analysis, detailed narrative, and conclusions ready to submit to your loan committee. The package also includes a recommended risk rating of the loan based on your specific risk rating matrix. Our credit presentation provides all the guidance and action steps you need to make an informed decision on any participation purchase opportunity. ￼