Loan Review Demands Professional Expertise

Are your lending operations at risk?

The current credit crisis is largely driven by uncertainty in the lending markets. High risk loan products fueled the fire. These problem loans had multiple risk factors, high levels of fraud, and were often made with inadequate consideration for the borrowers’ ability to pay. Even loans based on sound credit decisions at the time of origination can be problematic without proper monitoring in this economic environment.

With the credit crisis in the news, boards of directors and regulators are questioning management about controls over lending operations. With an effective internal control structure, your management can be assured that controls over lending operations protect the firm from significant financial, operational and reputational harm.

CrossCheck is rethinking traditional loan review. There is no one way… We look for the right way to implement practical solutions for your program. Specific service areas include:

Commercial Loan

• Outsourced / Co-sourced Loan Review

  Experienced professionals and resources such as tools and methodologies to assist in the administration of your loan review program.

• Program Development

  Define, document and implement policies and procedures.

• Allowance for Loan and Lease Loss (ALLL)

  Review of the methodology and adequacy of the provision.

• Acquisition Due Diligence

  Review of the target portfolio to determine the quality of assets and adherence to policies and regulations.

• Special Assets Evaluation

  Review of classified assets to recommend a course of action to minimize potential losses.
  

• Litigation Support

  Provide expert witness service.

• Special Projects

  Loan grading

Residential Mortgage

• Acquisition Due Diligence

  Conduct a thorough assessment to determine the quality and collectability of the loan portfolio.

• Litigation Support

  Expert assistance for litigation through consultation, loan review and expert testimony related to disputes resulting from the mortgage lending crisis.

• Repurchase Reviews

  Documented review of purchased loans to identify mortgage fraud or non-compliance to lending policy that result in repurchase.

• Quality Control Audit

  Perform prefunding and post-closing quality control audits of conforming, non prime, FHA and VA production to identify gaps in the lender’s origination, processing, underwriting and closing functions.