How We Help

Credit Underwriting Training

An Underwriting Training Contract will be tailored to your insitution's needs.

Whether all or some of the 5 C’s should be assessed depending on the loan type, loan size, and loan program, equipping your underwriting and portfolio management teams with a working knowledge of the key ingredients is what we aim to do.

We will tailor a training plan to your specific needs, provide hands-on scheduled training, be available to your team outside of training, and build a documented training guide along the way, so you can repurpose it in the future.

How We Guide Your Team

  • Historical and future potential cash flow analysis of a business operation, the specific project, and guarantor financial strength requires a strong understanding of Generally Accepted Account Principles and financial ratios. This will give the analyst the knowledge to analyze and assess the repayment strength of the borrowing relationship.

  • The more cash from savings the borrower invests in the project, the higher the likelihood the borrower will repay the debt. The level of cash reserves the borrowing relationship has overall, relative to short term obligations, indicates how reliant the lender can be on repayment during a downturn in profits. Strong GAAP and financial ratio analysis skills gives the underwriter the tools needed to assess the loan’s Capital strength.

  • While collateral strength should be viewed as a last-resort method of loan repayment, an inaccurate valuation could negatively impact a loan decision and increase the overall likelihood of a deficient recovery. A focus on appraisal practices and industry valuation standards empowers the underwriter to gauge the collateral coverage should all else fail.

  • The understanding of what makes up a credit score helps us to know why the credit score alone should not be solely relied upon to measure risk of default. We teach these concepts along with best practices on how to rely upon reported tradelines to assess historical and future cash flow.

  • It’s important to consider not only macro and micro conditions around a borrowing relationship, but also the loan structure to ensure it aligns with the borrower’s needs.

  • The appropriate types of liens, insurance, and other covenants are necessary as a condition of closing. Ensuring the closing team has the knowledge and access to information necessary to secure the loan as intended is key to protecting the lending institution if the loan defaults. After all, that’s what the loan documents are for.

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