Loan Re-underwriting

There are two key ways to think about risk in a financial institution's large loan portfolio. At the global level, there is the valuation of the portfolio as a whole, where the average risk and return of items in the portfolio is in question. At a more detailed level, within the portfolio there is embedded risk - the risk associated with individual loans or clusters of loans. Re-underwriting addresses this second component of risk.

We have a system developed specifically for loan re-underwriting that accounts for a lenders policies and procedures, the data captured by the lender on the borrower, past performance of other borrowers, and market conditions. We have a team of experienced underwriters who can reunderwrite either residential or commercial loans.

The Federal Financial Institutions Examination Council's (FFIEC) new Policy Statement on Prudent Commercial Real Estate Loan Workouts recommends flexibility for lenders to work through difficult financial circumstances without being required to write off their entire CRE portfolios. For an individual workout to be afforded safe harbor status by regulators, the workout plan must include current and comprehensive financial information regarding the real estate project, the borrower and any guarantors.

We assist financial institutions in re-underwriting commercial loans and commercial real estate loans to ensure that a financial institution is assessing proper risk management in its loan portfolios. We focus on loan and loan file review, exception reporting, appropriate risk rating assignments, and validation of the institution's allowance for loan and lease losses.