Preparing For The End Game When Underwriting New Credits

Most financial institutions we have represented over the years make a fine-line distinction between loan officers and asset recovery officers. In many instances, this distinction makes sense. If a loan officer considers too openly the risk for failure of a new loan, he or she may attract less new lending relationships and cut off the life-blood of that institution.  

That said, the problem with complete isolation of those two functions is this: if a loan officers fails to consider how the end game looks short of a full and timely pay-off, loan recovery efforts can easily (and often do) fall well short of the ideal recovery. Therefore, we offer some items for consideration at the earliest stage of lending. Here are some critical ways a loan officer might protect his institution if the borrower falls flat. These tips, we hope, help the loan officer, the underwriters, and the recovery officer alike. They definitely help our creditors' rights team answer important the