Financial regulators continue to emphasize two points: 1) verification of financial ratios, values, etc. and 2) the depth of documented support material. Current and accurate information (based on regulatory guidance statements) is critical not only for underwriting, but also on-going monitoring of creditworthiness.
There are three primary credit functions that financial regulators expect financial institutions to perform.
1. Spreading and analyzing financial information on the borrower and related entities
2. Performing an in-depth underwriting analysis
3. Monitoring of the borrowing entity’s financial performance
Although these duties may be assigned to the credit analyst, underwriter, or to the loan officer, this presentation will assume all are assigned to the credit analyst or underwriter. This webinar will focus on consumer lending and regulators’ emphasis points during safety and soundness examinations. It will also address regulatory guidance for home equity lending and 1-4 family residential investment properties.
- Role of the credit analyst/underwriter
- What regulators want to see
- Factoring in processes from recent regulatory issuances
- The credit risk evaluation process
- Use of risk grading matrix
- Underwriting the loan
- Issues with cash flow analysis
- Debt associated with the interest expense on IRS 1040
- Issues with debt service coverage – both D/I and debt service coverage ratio (DSCR)
- Taxes and living expenses
- Dealing with passive income
- Distributions and contributions
- Guarantor support analysis
- Global debt service analysis
- Stressed D/I or DSCR
- Collateral coverage analysis
- Structuring of the credit
- Home equity lending – regulatory guidance for junior liens
- Investor-owned 1-4 family rental properties – regulatory guidance
Who Should Attend?
This presentation is for beginning and intermediate-level credit personnel, including credit analysts, loan officers, loan review personnel, loan committee members, and credit-risk managers. Attendance verification for CE credits provided upon request.
About the Presenter: S. Wayne Linder, Young & Associates, Inc.
With over 30 years as a banking veteran, Wayne Linder was formerly the CEO of a community bank. At Young & Associates, Inc., Wayne works as a senior lending and management consultant. He performs loan reviews; assists financial institutions under regulatory enforcement agreements; performs management and board of director assessments; and develops and implements written policies throughout all areas of the financial institution.
Wayne is a popular seminar speaker with both national and international experience. In addition to his many published articles, he is the author of Loan Review Deskbook.
|Over $75 million
|$25 - 75 million
|Under $25 million