In the January 2017 issue of the RMA Journal, in an article titled “Banks Needn’t Fear a 1984 Scenario”, the RMA quantified the cost of underwriting a commercial loan. Their estimate specific to the cost of credit analysis was $6,140 per underwrite. One can argue the underlying metrics and assumptions but at the very least, this cost estimation prompts the question: Are you paying the right price for your commercial loan underwriting?
A number of our clients in recent years have found themselves situationally shorthanded on credit underwriting and have sought our help. We have provided that solution time and again with our dedicated group of experienced credit professionals.
We also tailor special engagements based on the specific needs of the bank. Recent examples of this include:
*For multiple clients, we have deeply enhanced the structure and presentation of Board reporting on commercial loans and concentrations (see the sidebar to the right). This ensures that 1) Senior Management properly presents and documents all decisions related to the Bank’s strategy and risk appetite, and 2) that regulatory scrutiny is satisfied in this crucial area.
We created an entirely new platform for Loan Policy Exception Reporting, including new procedures that 1) created a new workflow that ensured timeliness and accuracy of reporting on this crucial issue, 2) streamlined the process and clarified internal responsibilities, and 3) established new reporting that reflected easily digestible trend analysis. The final result was a meaningfully lower level of exceptions.
We performed a Community Reinvestment Act review emulating the methodology of a regulatory CRA exam. This allowed the Bank to plan for the exam and proactively defend its CRA performance in advance of the actual exam. This exercise has also been used to facilitate a change or expansion of its existing CRA assessment area.
We offer a broad set of skills and expertise related to credit risk management. If you have a credit crunch or a special project that requires timely completion, leverage Cobblestone’s abilities as a solutions-based partner to your advantage.