| inform. educate. connect. | Issue #9 - April 2010 |
|
Get the Right Training at a Time that's Right for You! Less time away from the office in 2010, more time focused on the right training! Multiple Commercial & Consumer Lending classes start April 19 (or start a Guided Self-Study Course at any time of your choosing). The Center for Financial Training and WIB offer professional training for the independent community banker in the West. Learn more. Which
Value? Declining conditions in the capital markets and deteriorating property fundamentals continue to put stress on commercial real estate loan portfolios. Regulatory requirements and internal bank policies often require reviewing the value of underlying real estate assets to support making prudent business decisions. Various concepts of value have evolved to respond to differing business situations. It is important to understand and clarify what type of value estimates are necessary based on the business problem to be solved. <read more> Enforcing
Personal Guarantees Under California Law The successful work out of a problem loan secured by California real estate is oftentimes the function of multiple variables. A practical assessment of the borrower's financial situation, the value of the underlying collateral and borrower integrity are all factors that can spell the difference between a payoff and a loss. But what about those loans where the borrower and its principals have decided to snub their noses at the bank in lieu of repayment? <read more> Anticipating
and Managing Real Estate Loan Defaults: A Best-Practices
Approach As residential CRE loan defaults appear to have subsided, experts point to uncertainty surrounding over $1 trillion of CRE loans held by banks which will mature over the next four years. In anticipation of a new wave of loan restructurings, the time to act is now. Best practices allowing the bank to better anticipate and manage loan defaults can be summarized in four key points. <read more> Creating
Value Requires Creating a Winning Strategy Negotiations with your borrower have been unsuccessful and you are now preparing to foreclosure on the collateral. This article, the first in a four-part series, highlights the steps lenders should take to develop practical and viable solutions to create value for their commercial OREO. <read more> Zero
Loss Reserving on an Adversely-Graded Loan? Zero loss reserving on an adversely-graded loan? Yes. In fact, it’s required …intuition notwithstanding. It’s a direct outcome of the regulatory requirement (and examiner expectation) that all SFAS 114 impaired amounts be charged off immediately, rather than added to the ALLL contra account balance as a specific reserve. So it’s less of an anomaly than it first appears. <read more> Risk
Management and Commercial Real Estate Workouts: Are
You Ready? The recently released Policy Statement on Prudent Commercial Real Estate Loan Workouts offers potential benefits to institutions with troubled Commercial Real Estate loans. Those benefits cannot be realized unless a bank can demonstrate risk management capabilities by having solid credit risk management practices in place to analyze commercial real estate credit concentrations and the potential risk. <read more> Handling
Increased Regulatory Examinations: Best Practices for the
Director Loan Committee Bank examinations by the many different regulatory bodies have significantly increased over the past year. CEOs expressed their growing concern over the issue at a recent luncheon, where they shared stories about the frequency and resource demands of these examinations. Understanding the depths of loan-by-loan analysis truly drives home the need to ensure that banks have sound corporate governance policies in place for the Director Loan Committee. <read more> |
||||
Take advantage of another valuable resource from WIB - the WIB Article Archives! You'll find a variety of articles on Lending & Credit, as well as other important topics! Click here to explore the WIB Article Archives Click here to view an electronic version of the March/April issue |
|||||
