Lending & Loan Review Services
We offer a variety of lending and loan review services designed to help your financial institution increase profitability, minimize and manage risk, meet regulatory safety and soundness requirements, and improve the overall efficiency of your lending function. We work with lenders of all sizes, from community banks and credit unions to multi-billion-dollar financial institutions.
Learn more about our lending and loan review services below or contact us today.
The Y&A ADVANTAGE
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Our Lending & Loan Review Services
For most financial institutions, loans represent the greatest share of your assets, and therefore, the largest risk on your balance sheet. We can help you identify and manage your risk exposure with an independent loan review that is consistent with safe and sound lending practices.
Our loan reviews are designed to determine your credit and underwriting quality, identify undesirable trends or credit deterioration, determine your compliance with policies and regulations, validate the accuracy of your risk ratings and recommend any process improvements.
We perform multiple types of loan reviews that can be tailored to your needs and desired scope including:
- Sampling of new originations by loan type and/or loan officer
- Review of your organization’s top borrowing relationships
- Specific portfolio or concentration review
- Watch list review and validation
- Review of insider loans
Our loan reviews can be performed on-site or as a virtual review using imaged files. We also offer a hybrid approach for added flexibility and cost savings.
For financial institutions with a concentration of Commercial Real Estate (CRE) loans and Agriculture (AG) loans, an annual stress test of your loan portfolios can help you effectively identify and control your risk in an adverse stress environment or economic downturn. Our CRE and AG Portfolio Stress Testing uses a proven model that provides more than an estimate of potential credit losses; it offers valuable insight into your credit risk that can be used in your strategic planning and capital planning efforts, as well as in decisions regarding your loan product design and underwriting standards. For added flexibility and convenience for your financial institution, our CRE and AG Stress Testing services can be performed remotely, rather than on-site.
When planning an acquisition, proper due diligence is key to identifying potential risks. Our lending consultants conduct due diligence reviews of individual loans and loan portfolios considered for purchase by your institution. This review will determine the underwriting quality, the level of regulatory compliance with safety and soundness standards and the adequacy of file documentation. We can also assess quality from a secondary market viewpoint or tailor our review to determine underwriting risks set by your institution. We work with management, third-party brokers and investment bankers handling the sale to perform these reviews quickly and discretely to ensure minimal disruption to your transaction.
Maximize the efficiency of your lending department while controlling costs. A lending department process review examines your institution’s credit processes, appraisal practices, ALLL policies, collateral valuation and inspection techniques, utilization of your MIS system, staffing levels, workflows and more. The assessment process also includes a review of your credit risk management processes and systems to identify, measure, control and report credit risk as outlined by the supervisory guidelines. We can customize these reviews to fit the needs of your lending department and size of your financial institution.
Properly servicing loans requires significant time, overhead and a deep understanding of compliance risks for lenders. At Young & Associates, we offer outsourced loan and escrow servicing for financial institutions that do not have the time or resources to perform this function in-house. By outsourcing this service, your organization gains access to our experienced team of loan servicing professionals, who offer specialized knowledge to guide you through this time-consuming and complicated process. Outsourcing your loan and escrow servicing will increase your operating efficiency and servicing capacity, reduce servicing costs from IT and infrastructure investments, enhance your decision making and risk management, while also ensuring regulatory compliance, data security and business continuity.
Managing problem loans can be time-consuming for financial institutions but doing so is key to protecting your assets. Through our loan workout services, our lending consultants can help your organization mitigate the adverse impact of non-performing loans including losses from charge offs, write downs, foreclosures and bankruptcies. We also provide support if your institution is having difficulty collecting on impaired loans, restructuring marginal and weakened credits or managing troubled debt portfolios. We can assist in all phases of the lifecycle of a troubled credit, from early default detection and negotiation through documentation of a successful workout or liquidation of collateral. Our loan workout services are intended to maximize your returns and minimize your losses.
Establishing a reserve for potential credit losses within your loan and lease portfolio is a requirement for banks and credit unions, and your methodology for calculating these estimates is subject to scrutiny from multiple regulatory agencies. We perform Current Expected Credit Losses (CECL) Reviews to provide your financial institution with an independent assessment of your CECL methodology and documentation process as required by the 2020 Interagency Policy Statement on Allowances for Credit Losses. Performed annually or bi-annually as recommended, our review can serve as an independent validation of your CECL methodology, as well as its conformances to generally accepted accounting practices and supervisory guidance.
