Writing Effective Credit Memos & Loan Narratives

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Member PriceNon-Member PriceDescription
$200.00 Archived Webinar + Free CD ROM
$169.00 For CUs Less Than $20M in Assets - Archived Webinar ONLY
   

Wednesday, September 10, 2014

9:00 am – 10:30 am HST
12:00 pm – 1:30 pm PT
1:00 pm – 2:30 pm MT
2:00 pm – 3:30 pm CT
3:00 pm – 4:30 pm ET

Credit memos are generally associated with commercial lending and are used for new loan requests or renewals, periodic financial reviews, and documenting the file for workout situations and associated action plans. The key to writing effective credit memos and loan narratives is to develop consistently detailed presentations that help decision makers fully understand the nature of the borrower/business, as well as the credit relationship and/or the project being financed. It should identify the risks and explain financial data in terms of key line items, material funds flows, trends, and variances in order to paint the picture of the borrower’s financial condition, ongoing viability, and capacity to meet obligations and projections. The level of detail and analysis should be appropriate to the complexity and size of the relationship, and should always focus on assessing the overall credit risk to ensure the lender has enough information to make sound credit decisions. This webinar will look at how to develop meaningful write-ups and avoid getting caught in the “form-over-function” trap.

Continuing Education: Attendance verification for CE credits upon request

HIGHLIGHTS

  • Key elements that should be included in every commercial loan write-up
  • Achieving the right risk-based balance – one size does not fit all
  • Using tables, graphs, or charts within the narrative to show related entities and ownership structure, display financial trends, and focus the narrative on highlighting critical information and explanations
  • Getting beyond the data regurgitation common in credit write-ups – get the back story
  • Key financial ratios to consider and what they mean
  • Relevant industry trends, geopolitical, regulatory, or other environmental factors that may impact the borrower’s or the project’s near-term performance and longer-term viability
  • Evaluating the borrower’s sensitivity to interest rate shocks and stressors on key variables
  • Drawing credit risk conclusions and identifying strengths, weaknesses, and mitigants
  • Common examiner criticisms of credit write-ups

  • TAKE-AWAY TOOLKIT
    • Sample credit analysis memorandum format
    • Online resources for industry analysis
    • Employee training log
    • Quiz you can administer to measure staff learning and a separate answer key

WHO SHOULD ATTEND?

This informative session is designed for commercial lenders, credit analysts, and commercial loan administration professionals.

PLEASE NOTE
Webinar content is subject to copyright and intended for your individual credit union’s use only.

MEET THE PRESENTER

Lisa Zigo
Brode Consulting Services, Inc.

 
View Shopping CartView Registration Options and Pricing
Member PriceNon-Member PriceDescription
$200.00 Archived Webinar + Free CD ROM
$169.00 For CUs Less Than $20M in Assets - Archived Webinar ONLY