- NEW Credit Review Northwest, LLC has now partnered with Banker’s Toolbox to add commercial real estate loan stress testing to our lineup of services.
- Utilizing CrestTM, a proprietary stress testing solution from Banker’s Toolbox, we can perform stress test analysis to assist you in managing your CRE loan portfolio risk.
- Crest is cutting-edge stress testing technology which can help financial institutions more accurately determine risk exposure, reveal strategies for creating a healthier loan portfolio, and comply with federal regulations for CRE loan risk management.
- Evaluation of portfolio quality, and accuracy of assigned risk ratings
- We perform a file-by-file review of a sample population of loans. The sample population is derived using our software, then overlayed with a judgmental sample. We consider current risk rating, industry, collateral, originating loan officer, performance and loan size in developing the sample.
- The results of the file-by-file review are aggregated and used to draw conclusions about the portfolio quality and accuracy of risk ratings.
- Credit Administration review - approval, policy exceptions,
underwriting, loan structuring, monitoring, problem loan identification
and management
- As we look at portfolio quality, we also look at how the portfolio is managed on a day to day basis. We rate each relationship reviewed on Underwriting, Financial Analysis, Collateral Analysis, Loan Administration, Problem Loan Management (if applicable), Risk Identification, and MIS (accuracy of loan data in the loan system of record).
- Loan documentation review
- We review the documentation for a variety of loan types to verify that documents are properly signed and liens are perfected. We follow the documentation process to determine if there are weaknesses at key control points.
- Assistance on due diligence reviews
- If you are acquiring a loan portfolio, large or small, it is important to know its composition. We can review the portfolio to determine the accuracy of assigned risk ratings, the effectiveness of the credit administration, needed impairments, and the quality of underwriting and analysis.
- Loss forecasting and loan "autopsies"
- If requested, as we review the loans we can estimate future downgrades and potential losses. In doing so, we take a conservative view of collateral values, we consider the maturity dates and loan structure, and we consider the state of the local economy for various industries. This forward-looking review can help management make decisions regarding loss allocations.
- Credit policy review
- We will review existing policy and provide recommendations for enhancements. An annotated copy of your policy with our comments will be provide for your consideration.
- Special projects
- We can assist on any credit related special project the bank needs. Examples are deep dives into portfolio segments, help with credit training or policy development, or guidance with the rollout of new products.
- Evaluation of lending personnel
- A review can focus on a particular officer or officers, providing detailed information regarding analytical skills and loan structuring. Similarly, we can provide a higher level review of all loan officers and highlight strengths and weaknesses. This type of review is aimed to help develop the credit skills of loan officers by determining areas where further training may be called for and also pointing out who on staff may be a good trainer.
