As financial institutions merge, make acquisitions of other institutions, or acquire loan portfolios, they need a timely, high quality assessment of the risk in the underlying loan assets. We understand both the urgency associated with the due diligence process, as well as the critical risk factors to be assessed.

We will review files to determine an accurate risk grade, within the Client’s risk rating definitions, as well as other risk factors such as collateral coverage, debt service coverage/DTI, accrual status, credit mark, credit rating outlook, and loan administration. A high level review of loan documentation is standard but can be more in depth if requested by the Client. Specific risk factors can be included in a review, such as leveraged lending, HVCRE, covenant testing, construction loan management, risk rating outlook, or other factors.

The Client is provided with daily reports reflecting any findings such as risk rating profile, missing financial information, documentation exceptions, covenant testing, and compliance exceptions. Upon completion, a comprehensive narrative for each loan reviewed, as well as a Management Letter is promptly available, and our Directors are available for a more nuanced discussion, both during the engagement and upon conclusion.