The best time to identify potential credit problems is before a loan is made. Loan officers and credit analysts must be able to identify viable loans based on business and borrower information provided by the applicant. Identifying and mitigating potential weaknesses sooner means less time spent pursuing loans that are outside of a financial institution’s acceptable risk.
This webinar will review key indicators used by industry experts to predict a borrower’s strengths and weaknesses. Once a decision is made to move forward, regulatory guidance requires a comprehensive review of the borrower’s financial condition, including the long-term viability of the business. This webinar will focus on potential loan weaknesses to be aware of during the interview and underwriting processes.
- Operating entity’s general financial health
- Depth of underwriting analysis, including cash flow, liquidity, leverage, profitability, stress testing, and collateral valuations
- Passive income: using Form 1040 Schedule E information
- Debt service coverage add-backs and subtractions, including depreciation, net operating loss, rent payments, tax liability, living expenses, partnerships, and more
- Capital expenditures (CapEx) – a requirement for sustainability
- Recognizing and assessing contingencies
- Distributions and lifestyle: are continuing distributions needed?
- Financial flexibility – borrowing power
- Management weaknesses
- TAKE-AWAY TOOLKIT
- Employee training log
- Quiz you can administer to measure staff learning and a separate answer key
WHO SHOULD ATTEND?
This robust webinar will benefit beginning- and intermediate-level credit personnel, including credit analysts, commercial loan underwriters, general loan officers, loan review staff, loan committee members, and credit-risk managers.
SPEAKER: S. Wayne Linder, Young & Associates, Inc.
A thirty-year banking veteran, Wayne Linder was formerly the CEO of a community bank. As a Senior Consultant with Young & Associates, Wayne works as a lending and management consultant. He assists financial institutions under regulatory enforcement agreements and develops and implements written lending policies. Wayne is a popular seminar speaker with both national and international experience.