Building a Foundation of Safety and Stability to Grow Revenues and Relationships
All good loan review consultants ensure that the institution’s risk ratings are solid, but not all firms go the extra mile like M&M Consulting does. Let us show you how we help credit professionals and boards of directors achieve peace of mind with the following added benefits:
M&M will provide a detailed review of policy and procedures to ensure best practices and compliance with applicable regulations and laws. M&M will also review work flows for efficiency and examine staffing levels relative to portfolio sizes and complexity. M&M will also review the loan input and quality control processes that are in place at the institution.
Prior to an on-site visit M&M will review and sort the commercial loan trial by loan type and loan officer. We ensure that our “pull list” includes all types of commercial loans, samples of loans from each loan officer or lending team, and a sample of documentation by each loan assistant or loan processor. Our methodology helps to identify structural weaknesses or training needs before they become major problems.
M&M Consulting has developed a proprietary tool using Microsoft Excel which increases efficiency and accuracy. Our system allows us to give daily or hourly updates on the progress of the loan review project, including the percentage completed and a listing of all Action Items. During the course of the review we shall frequently update management on Action Items and work with staff to resolve these documentation and underwriting exceptions in order to minimize the number of Action Items in the final report. M&M also provides comparisons with peer groups of similar institutions to help provide “apples to apples” performance comparisons for senior management and Audit Committees.
M&M Consulting will review the qualitative and quantitative factors used by management in the development of the ALLL and comment where we feel that our opinions can be useful to management. We use our best judgment to provide advice on the sufficiency of the ALLL based on current input from regulators and peer institutions. M&M is preparing for the shift to the CECL model of loan loss allowance and is happy to discuss strategy and tactics with our clients.
In addition to measuring relative performance against a peer group, we find it helpful to measure performance against your own institution over time. M&M Consulting provides analysis of trends in the portfolio over time, including migration trends within the pass rated and classified loan portfolios. We qualify the migration by digging into loan types, geography, and human resources that may be positively or negatively influencing the overall portfolio quality.
M&M can assist institutions in their strategic thinking and resource allocation as they begin to think about the conversion to CECL. M&M has a balanced and practical approach to the development of policy and procedures for both the Credit and the Finance areas of the institution. Let us help as you begin to prepare for the conversion to CECL.
M&M’s approach to loan review covers both the highest level of governance when it comes to policy, trend analysis and migration analysis, coupled with detailed reviews of every loan type, every lending officer, and every member of the support team. Our goal is to catch a weakness at an early stage, before it becomes a systemic problem for the institution. Our team works with speed and accuracy, and is given high marks from our clients for clear and consistent communication.