How do you find LOC renewals?
The only thing that is done on our system for these loans is that the expiration date or credit limit is changed. The origination date stays the same, so this means going in through a query to maintenance done and researching to find GAR, location, etc... Without imaging, this would be even more difficult. We are a JHA Silverlake Bank, and have CRA Wiz.

What I do is run a query every month on all commercial loan types and include those sections of the call report relating to NF/NR real estate or commercial purpose. I include in my query the renewal date which will include renewals and extensions. I can do a quick look up on Jack Henry to see if it's been extended or actually renewed.

How do you know whether it is an extension or renewal? Is there a certain field I'm missing? I am querying changes to the credit line expiration field, but can only ascertain renewal by looking for a signed letter of credit line renewal that has been imaged.

Do you change the Origination Date? For CRA purposes the Origination is reported and if its not changed on your system then you have another issue.

Usually the renewal is booked showing the "renewal date" There may also be a field on your system that shows the original origination date. In that case you would look for a renewal date field.

Our credit dept. codes them and it will say either renewal or extension...it is the same for all our loans - not just LOC's. I hit the function key for "history" and it tells me if they did this as a renewal or I hit the function key for "maintenance" and it tells me if it was extended and by how many months. I am doing CRA in the Compliance Dept. and look at the loans after they have been processed and booked by our credit dept. Maybe that is our difference?

Thanks Don and Shannon - I looked and I found both a renewal AND extension date field! Both were blank - Looks like we need to train someone to use these.

In traditional commercial lending, LOC renewals occur annually. Normally, this involves the presentation to the loan committee of updated credit information and a new decision is made to renew or modify the credit. If the credit is not disqualified as CRA reportable for some reason (e.g., LOC over $1 million), the full amount of the line would be reported. Sometimes, the LOC is extended beyond the current annual maturity date because not all the relevant data has been collected and there is inadequate information to make a new credit decision until the data is available. The extension would not be reported. The committee minutes and loan file should clearly document this.