What is Continuous Loan Review?

Continuous Loan Review includes areas covered by the traditional annual review – portfolio sample, past dues, problem and potential problem assets and servicing of the loan portfolio; but instead of one long extended review, it is done throughout the year by the same loan review team. This method is dynamic in that the scope can be adjusted as needed to respond to current management or regulatory concerns.

One of the advantages of Continuous Loan Review is the ability to focus on loans soon after they are booked which serves as a credit underwriting training tool, as well as finding errors early on during the loan term. Early identification allows management to take steps to immediately correct the error and to prevent future systemic problems.

Another advantage of Continuous Loan Review is the consistent follow up by the loan review team on underwriting and document deficiencies and exceptions and on the implementation of recommendations adopted by the Board and Senior Management.

With Continuous Loan Review, standard reports are provided to Senior Management and the Board of Directors on a quarterly basis. While extremely thorough in the information presented, the reports are well organized and easy to read and digest.

The goal is not just to provide recommendations and prepare a report, but also to work closely with Senior Management to help implement and reinforce the desired credit culture of the Bank.

Continuous Loan Review provides the equivalent of a “proficient in-house loan review department” at a fraction of the cost.
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