Bonnie offers some good suggestions for preparing to even off deposit secured loans. I'd like to add some red flags to look for once the loans are on the books:
Structured payments- in addition to structured cash payments, keep an eye out for monetary instruments that may have originated fromm structured purchases.
Large lump sum payments (this goes with Bonnie's question about how the loan will be repaid)- large, unexpected payments made with cash, monetary instruments, loan proceeds from another FI, or early redemption of the collateral deserve closer scrutiny.
Churning- repeatedly paying off loans, usually well ahead of schedule, and re-using the collateral to secure new loans.