The largest – and most crucial – group of assets on your balance sheet is your loan portfolio. For most financial institutions, it represents the majority of earning assets as well as the greatest risk exposure. Adopting a proactive stance toward credit risk management is a sound fiscal management strategy that can help you protect your institution and all who depend on it.
Working closely with organization leaders, our experienced credit review professionals address all aspects of credit risk to confirm the quality of your loan portfolio and consistency of your risk rating, using a comprehensive credit review methodology customized around your institution’s unique position and lending profile.
Whether your financial institution faces extraordinary credit review challenges or you simply need assistance with routine monitoring and compliance, you can depend on Mauldin & Jenkins to help you identify and proactively address credit risk, along with the rigorous, ongoing monitoring of credit-related risk that is key to maintaining a strong institution.
Why Choose M&J?
From De Novo Status to multibillion-dollar entities, financial institutions of all sizes trust M&J to provide high-quality, cost-effective credit review services that offer both value and efficiency while ever-mindful of regulatory-recommended scopes. Benefits include:
- Validation of credit quality to ensure appropriate loan portfolio risk ratings
- Identification of potential pitfalls and risk management strategies within loan portfolios
- Evaluation of classified loan management
- Verification of adherence to established loan policy and lending procedures
- Collateral documentation and exception tracking for compliance and accuracy
- Strategies to improve credit policies and procedures using M&J’s best practices
- Review of loan covenants to ensure compliance with loan agreements and approvals
services we can provide include, but are not limited to, the following:
Commercial Loan Review
M&J provides commercial loan review programs implemented by seasoned banking professionals with senior lending and risk management experience. Working with regional and community banks, credit unions and commercial finance companies, our commercial loan review team brings outstanding depth of knowledge bolstered with years of practical experience that allows us to conduct the review process efficiently and thoroughly utilizing current industry data.
M&J's commercial loan review programs are customized to meet each client’s specific needs and structured to incorporate industry best practices and consistently exceed regulatory expectations. You can expect an actively managed review program with scheduled reviews at regular intervals as well as ongoing monitoring to ensure the full scope of the regulatory requirements is met and exceeded.
And as a full-service firm with a national presence, we can conduct loan reviews on-site, remotely or as a hybrid service delivery arrangement.
- Loan quality indicators utilizing real-time industry data
- Risk Rating Assessments and grade change recommendations
- Review of relevant concentrations and portfolio trends
- Ongoing monitoring and lender adherence to loan policy
- Review of vendor-provided reports such as appraisals and environmental assessments
- Exceptions to policy and loan agreements
- Specialized focus on the institution’s specific portfolio composition
Mergers and Acquisitions, M&A - (Credit Due-Diligence)
In any merger or acquisition, an accurate picture of the quality of assets is critical to inform investment decisions. Potential buyers and sellers alike trust the M & J credit review team to identify risks that might not be apparent without a full portfolio review.
The M&J credit review team supports financial institutions across the U.S. with M&A transactions on both the buy and sell side, assisting in multiple M&A deals for everything from credit due diligence to identification of potential asset deterioration.
Performing reviews in a timely manner with ongoing feedback provided to clients, our team prioritizes clear communication to help guide clients and provide crucial information during the entire M&A process.
Small Business Administration (SBA), Statement of Purpose (SOP) 7a Compliance
High-quality SBA SOP 7a lending compliance reviews and regulatory readiness reviews are critical to help SBA lenders protect their guarantees. If a borrower defaults, the SBA guarantee may not be valid if the lender failed to meet SOP standards and the failure is material to the failure of the business, leaving lenders at risk. Financial institutions often seek an SBA SOP compliance audit to identify potential vulnerabilities in the lending process for early detections of loss, potential repairs to the guarantee prior to note sale activity.
Whether they focus primarily on SBA loans or include these loans as a small portion of a broader portfolio, lenders trust the M&J credit review team for timely and accurate SBA SOP compliance reviews.
- Review of compliance with approvals from GC or PLP
- Verification of documentation as set forth in loan authorizations
- Verification of sources and uses of funds
- Documentation of collection efforts that may impair guarantee
- Credit elsewhere compliance review
- Review for violations of unqualified borrower affiliations
- Review of PARRiS audits
- Evaluation of operations and activity lending personnel
Specialized Credit Reviews
Every industry operates differently, so it’s important that you have a trusted team of advisors to guide you through the process of conducting a specialized credit review. The M&J Credit Review team brings deep expertise and experience performing specialized reviews, including; AG Lending, targeted at Residential and Commercial ADC, and Asset Based Lending.