Does anyone complete loan reviews at their institutions? We outsource this every other year, and this year I am completing it. Could someone share with me what they might use in the process? Do you have any spreadsheets or useful information that you might be willing to share. I have done several loan compliance audits, but I am a little rusty on the credit analysis side to determine if the loan was actually a good loan. I would greatly appreciate any help.

Thank you

You should be able to look at your policies and see what the credit analysis guidelines are to then be able to determine if the loan falls within the guidelines. Also, if the policy allows for loan outside the guidelines to be made with committee or board approval there would need to be evidence of this in the loan files. Essentially you would be looking to make sure that the policies and procedures are followed, that all documentation required has been collected and that the excpetions have been followed up on timely - anyway this would be my plan...

Thank you, I will start there.

Since you outsourced the loan reviews in prior years, your bank should have a signed version of the service contract/engagement letter from the former loan reviewer -- and you could use this as a starting point to help determine your loan review scope (your loan policy will likely outline the required loan review parameters as well). As for loan review spreadsheet templates, there are many floating around. I would think your bank should have access to the former reviewer's workpapers and you could use their template as a starting point (or simply ask the former reviewer or a contact you have at another local bank to email a blank template to you).

Our last reviewer used an automation software and our loan department just started using a template that they created. I have reviewed it and does seem to work well. Thank you for input. I appreciate your response.

We just brought our loan review in house earlier this year. If you provide your name and phone number I will forward it to our Loan Review Manager to contact you back. (jadam@fnbwecandothat.com)