Loan Review
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Making Headlines – Credit Trends and Risk Management Take Center Stage
As credit stresses grow and borrowers face cash flow stress, lower income, and higher costs, financial institutions should consider adjusting their strategies for underwriting, managing, and monitoring credit risk.
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Revisiting Loan Portfolio Management Fundamentals
This blog was authored by my colleague Erica Crain, a principal within our financial services group. As the economic environment shifts with increased interest rates and credit weakening projected while liquidity sources are highly scrutinized, it is important for financial institutions to revisit the significance of loan portfolio management fundamentals. Effective loan portfolio management involves […]
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As Rates Continue to Increase, So Does Refinance Risk
When with a group of senior lenders and chief credit officers recently, the question was asked – what keeps you up at night? The answer: refinance risk. Simply put, refinance risk is the risk that a borrower will not be able to refinance their existing loan at favorable terms when it becomes due which could negatively impact their ability to repay the debt.
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Looking Ahead in 2022
One of CLA’s strategic advantages is our deep industry specialization. As we look to get a leg up on 2022 and absorb the lessons learned from 2020 and 2021, we see numerous opportunities and areas of focus for our financial institution clients. If we’ve learned anything during this time, it’s that we need to look at risk differently in this ever-changing environment.
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Problem Loan Management – Action Plans
In this three-part series, our goal is to provide considerations for evaluating the overall problem loan management function as we continue to navigate the economic impacts of the COVID-19 pandemic. In this final part our problem loan management series, we turn our focus to action plans.
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Problem Loan Management – Evaluation of Performance and Modifications
In the next part of our problem loan management series, we turn our focus to financial analysis, frequent monitoring, and how to account for special considerations such as loan modifications and extraordinary items on financial statements.
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Problem Loan Management – What is it?
In this three-part series, our goal is to provide considerations for evaluating the overall problem loan management function as we continue to navigate the economic impacts of the COVID-19 pandemic.
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Federal Banking Agencies Provide Appraisal and Evaluation Deferrals to Expedite Lending
Federal banking agencies issued an interim final rule this week to temporarily defer real estate related appraisals and evaluations under the agencies’ interagency appraisal regulations. The rule provides temporary relief to allow regulated institutions to extend financing to creditworthy households and businesses quickly during the national emergency declared in connection with COVID-19.
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Health Check: Your Loan Portfolio and the Current Economic Environment
Whether you are a lender or employ lenders, you may be asking yourself “Where do I begin?” Start with these best practices, designed to help financial institutions manage loan portfolios during this difficult time.
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Same Loans, Different Cycle: A Look at Agricultural Lending
As seen in 2019, challenges in the farm economy go deeper than farm income. Balance sheets indicate unfavorable trends such as higher debt and lower working capital. As such, the regulators have reiterated the importance of strong underwriting and credit administration practices for banks and other financial institutions lending to farmers and other agriculture interests.