Uncovering and Preventing Holes in the Lending Process

PRESENTED BY:

Peter Brown

Senior Consultant

Jack Rash

Subject Matter Expert

February 25, 2015

UNCOVERING AND

PREVENTING HOLES IN

THE LENDING PROCESS

Housekeeping Items

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Today’s Presenters

PETER BROWN

Peter is a senior consultant for Sageworks,

where he provides risk-management

advisory services to Sageworks’ bank and

credit union clients. He brings experience

in technology, business and financial

services into his role. Peter successfully

navigated the challenges of running a small

business in a competitive marketplace.

JACK RASH

Jack is a Subject Matter Expert for

Sageworks. Previously he served as

Director of Enterprise Relationships, where

he worked with bankers to provide

technology solutions to their lending

challenges. Before joining Sageworks, Jack

was a Vice President for Wachovia and

Wells Fargo in the Business Banking

Division of Raleigh, NC.

Agenda

PERSONAL LENDING EXPERIENCE

+ Jack Rash

+ Background

LIFE OF LOAN

+ Holes

+ Challenges

+ Impact

+ Solution

Poll Question

Personal Lending Experience

JACK RASH

Background

COMMERCIAL LENDING

+ Complex Process

+ Increasing Data Requirements

+ Various Departments and People

Analysis Committee

Covenants

Reporting

Loan ReviewStress Testing

ALLL

Ticklers

Due

Diligence

The Life of a Loan

Up-Sell

Loan Request Credit Memo

Approval

Servicing

Portfolio

Management

Closing

Prospect

Analysis Committee

Reporting

Loan ReviewStress Testing

ALLL

Ticklers

Due

Diligence

The Life of a Loan

Up-Sell

Loan Request Credit Memo

Approval

Servicing

Portfolio

Closing

Prospect

Covenants

Core

Holes

IN MANAGING THE LIFE OF LOAN

Holes in Process

+ Hand off between departments

+ Lending vs. Compliance

+ Disconnected Systems

Hand Off Between Departments

Lending vs. Compliance

Disconnected Systems

Challenges

THE LIFE OF LOAN

Challenges in the Process

+ Double or triple entering data

+ Inconsistent processes

+ Difficult oversight for management

Data Challenge

Inconsistent Processes

Difficult Oversight for Management

Impact

THE LIFE OF LOAN

Current State - Impact

CHALLENGES

+ Data

+ Processes

+ Oversight

IMPACT

+ Bottlenecks

+ Examiner scrutiny

+ Lose deals

Poll Question

Solution

THE LIFE OF LOAN

Solution

DATA

+ Pull all of your data together in one place

PROCESS

+ Standardize processes that are clearly defined

PEOPLE

+ Hold staff accountable and allowing them to focus on higher value functions

Sageworks Comprehensive Suite

BENEFITS

+ One solution for the entire life of a loan

+ Manage your processes and data more effectively

+ Comprehensive and custom reporting

Contact Information & Additional Resources

Peter BrownSenior Consultant

[email protected]

866.603.7029

LinkedIn Groups+ ALLL Forum for Bankers

+ Commercial Credit Risk Professionals

Website+ www.sageworksanalyst.com

+ Whitepapers, webinars,

thought leadership

2015 Risk Management Summit+ September 23-25 | Chicago, IL

+ ALLL & Stress Testing