Credit Review, ALLL, and SBA and Other Lending
Credit underwriting and administration processes are vital to a lending institution's health. Credit Reviews assess the effectiveness of these processes, starting with a sample of loan files to evaluate loan and borrower risk identification, including risk grade assignments. The sample should include:
- New loans (underwriting quality)
- Adversely-graded loans (problem loan monitoring)
- Seasoned Pass-graded loans (risk grading responsiveness)
Portfolio Risk
Regulators increasingly focus on portfolio-level risks, such as correlated credit risks from concentrations in geography, industry, or loan type. Our Credit Reviews address concentration management, compliance with CRE risk guidelines, and single-name risk.
ALLL Validations
We conduct regular ALLL validations to ensure compliance with Interagency Guidance and assess the adequacy of reserves. We also support clients transitioning to the new CECL standard, guiding the shift from the incurred loss approach.
Other Credit Services
Our team offers advisory services through our affiliate, Insight Risk, including due diligence for loan portfolios and bank acquisitions. We also support areas like Mortgage Operations, SBA SOP, Trade Finance, and more.
Michael Lai has over 35 years of credit and lending management experience, with certifications including CIA, CRMA, and CFE, and an MBA from Hong Kong universities.