Loans are one of the most important elements of the financial industry and effective management of your loan portfolio is one of the primary keys to unlock your institution’s potential. From commercial to residential to consumer, good quality credits play an active role in your organization’s success. Compass Group Consultants seasoned loan veterans are well-versed in loan regulations and compliance requirements as well as loan policy and portfolio management. 

Since loans play a pivotal part in your institution’s bottom line, and regulatory guidance mandates independent loan review, it’s important to make sure your policies and processes are robust and effective, and your loan files are well maintained. Our lending products and services include:

Loan Policy

Compass Group Consultants has developed a comprehensive loan policy that encompasses all your institution’s lending processes and functions. From needed separation of duties in the lending organization, to detailed underwriting and required loan file documentation, our loan policy provides a complete framework l that will meet regulatory guidance. Additionally, we provide ongoing maintenance and support to make sure your new loan policies stay up-to-date.

ALLL (Allowance for Loan and Lease Losses)

Compass Group Consultants also provides regulatory compliant policies and procedures for ALLL. Our polices define key roles and responsibilities for ALLL and provide you with all the methodology documentation required by your regulators. Current GAAP accounting standards are used throughout with easy to follow flow charts to help guide you to complete, accurate, and well-documented ALLL provisioning.   

Independent Loan Review

Loan review is a mainstay of internal control of the loan portfolio and periodic objective reviews of credit risk levels and risk management processes are essential to effective portfolio management.  Independent loan review and reporting are key to maintaining effective lending controls. Compass Group Consultants is just that—independent. We can provide an objective view on your loan portfolio and an unbiased report diagnosing its strengths and weaknesses.  We’ll evaluate your credit risk, management controls and make sure your documentation is current and available; enabling you to communicate results efficiently to management and the Board of Directors.

Loan Audits

While loan review mainly evaluates credit risk, audits will evaluate operational effectiveness or substantiate your lending related models, such as funds transfer pricing, credit scoring, or financial analysis software. Performed on a risk basis, annually, or whenever models are updated, an audit will provide you with independent feedback on whether your loan framework is functioning effectively, accurately, and using correct data.