Proactive Loan and Portfolio Review

In today’s dynamic environment, banks need innovative ways to stay ahead. To help you proactively manage your loan portfolio and mitigate losses, A10's experienced lending and workout professionals can help re-underwrite loans based on forward-looking trends. We segment your portfolio into green, yellow, and red categories to prioritize your holdings, thus enabling you to closely monitor the loans with the greatest risk of loss.

LOOKING THREE CARS AHEAD

We provide a forward-looking projection for each loan to help you develop appropriate loss mitigation strategies well before a loan goes into default. Appraisals are not the best way to identify credit challenges because they are based upon historical data that may not be relevant in today’s rapidly changing markets. Relying on appraisals alone is akin to relying on the rear view mirror to drive forward. Our services give you the ability to look three cars ahead and make adjustments in plenty of time to prevent a crash.

Yesterday’s Deal vs. Today’s Deal (PDF)

CUSTOMIZED STRESS TESTING

A10 can also develop customized stress test models on a variety of complex commercial loans. Our models enable us to run simulations on your portfolio to see how various factors will impact future performance. These models—also utilized by various rating agencies, including Standard and Poor’s— offer loan-level inputs that can be rolled up into a broader portfolio view. For example, on commercial real estate loans we can run stress scenarios that model the impact of changes in capitalization rates, vacancy factors, and lease rates.

WHY UTILIZE A10 FOR LOAN REVIEW?

A10 has over 100 years of combined commercial real estate and commercial lending experience. Besides offering a highly experienced team, A10 has a variety of data sources and relationships in your marketsthat enable us to identify the trends that will have the most impact on your portfolio. Regulators will also gain the comfort of having your portfolio scrubbed by an independent expert.

BENEFITS OF PROACTIVE LOAN REVIEW

• From a loss mitigation perspective, proactively managing loans is significantly more effective than reacting to a loan that has already gone into default.
• Pre-examination check up – identify your problem loans before the regulators find them.
• By knowing what lies ahead, you are able to make informed decisions rather than being forced to react to borrower demands.
• Our customized stress test models can give senior bank management insight into future loan performance based on fundamental changes of a particular asset class.