This training program will explore the underwriting and reporting on commercial real estate, construction loans, acquisition and development loans and multi-family unit loans. In doing so, several samples of proven credit memos will be examined to insure bankers are covering the areas required by the banking regulators.
In writing effective credit memoranda, it is not what you say that commands attention, but how you say it. Credit memoranda serve three functions:
Why Should You Attend:
After a detailed credit analysis of a loan request has been performed, it is now time to communicate your findings in writing. Credit memoranda are a primary means of communications within the banking industry.In writing effective credit memoranda, it is not what you say that commands attention, but how you say it. Credit memoranda serve three functions:
- They provide information on the condition and status of a customer relationship.
- They provide a record of thoughts and actions.
- They support or recommend action.
- This webinar will teach skills required to write an effective credit memorandum, which places emphasis upon factors or trends that are important without the need to state the obvious. In short, the credit memo should present relevant, material facts and the writers’ thoughts and opinions. Remember, anything you write in a credit memorandum will become public record if you find yourself in court with a borrower.
Learning Objectives:
- Strengthen their understanding of credit analysis
- Clearly describe the financial impact of changes in financial factors and not just report on what changed
- Interpret financial trends and financial ratios
- Write succinct and focused credit memoranda
- Meet with management armed with relevant questions and issues to be addressed
- Feel more confident in defending a recommended course of action based upon relevant facts and not instinct
Areas Covered in the Webinar:
- Balance sheet analysis
- Income statement analysis
- Cash flow analysis
- Calculating and interpreting financial ratios and cash flow
- Using analysis to determine the financial impact of changes in financial factors
- Questions to raise with the customer after the credit analysis is completed
- Outline of relevant factors to include in a credit memorandum
- How to report your finding efficiently and effectively in the credit memorandum
- Apply the concepts to a study case
Who Will Benefit:
- Commercial Loan Officers
- Consumer Loan Officers
- Credit Analysts
- Loan Review Personnel
- Compliance Officers
- Internal Auditors
- Branch Managers
- Credit Administration
- Loan Operations Staff
Course Provider
Robert D Hawkins,
