1. Final Review Request
Understanding the
Strength of the File

2. Understanding the Strength of the File
• Verifying ownership
• Completeness of Loan package- ensure that all
documents are complete
• Commitment and Collateral- how is it measured?
• Character of the Applicant-how is it measured?
• Loan Officer recommendation summary

3. Verifying Ownership
Ownership
• Loan Processor must review the business DBA/ articles of
incorporation/partnership agreement as soon as he/she receives it
to make sure that the borrowers listed in the application are the
right people that should be applying for the loan.
• Do we Need to Add or switch Borrower(s)?
• Correct Business Name?
• Sole-Proprietorships:
• Partnerships:
• Corporations
• Non-profit organizations

4. Completeness of Loan Package
Ensure that all documents are complete:
• Review the Required Documents
• Address Questions that may arise regarding the documentation.
• Recommend to start a list of issues you may find and address with
customer at once
• Update the system
• Identify issues in the Loan officer Recommendation

5. CreditAssessment
Credit:
• Tier- Underwriting Grid
• How it relates to the income
• Reference for character assessment-
• What type of account (s) are the unpaid items?
• Amounts in collections and write offs.
• Has made any payment arrangements?
• Question the reason for the negative information.
• Red Flags- Different Names and addresses, credit
inquiries

6. CollateralAssessment
Collateral is often used to leverage of the loan request
and the stability of the Collateral may affect other
components of the loan application decision.
• Strength of the assets available as collateral.
• Valuation Policy versus Strength of Collateral

7. Collateral Review
Loan Processor Role:
• Formal Detail Description Entered in MMS
• Supporting Ownership Documents Needed
• Value Verification

8. CommitmentAssessment
Measure Commitment
• Commitment can be measured with the collateral
the applicant is willing to offer to secure the loan
request.
• Commitment is also measured with the personal
injection
• Does the business owner re-invest the business
profits? Or, do they take all profits home and de-
capitalize the business?

9. CharacterAssessment
Character of the Applicant:
• Do they have a clear idea how the loan will be repaid if
the business does not succeed?
• Applicant has a strong knowledge of the business
• Applicant’s W2s and Tax returns match or exceed what
was stated on the loan application.
• Applicant came up with the collateral agreed to provide.
• Applicant provided all pertinent information
• Applicant does not blame others shortcomings
• Applicant obeys laws-files tax return
• Applicant is patient with reasonable loan processing
time

10. Loan Officer Role
• Confirm that RDL is complete
• Review documents to identify any issues, trends,
questions, etc.
• Recommend to start a list of issues you may find
and address with customer at once
• At the end of your review and before you start
writing your loan recommendation ask yourself:
• DO I KNOW AND UNDERSTAND THIS
BUSINESS?

11. Loan Officer Recommendation
• Capacity, Credit, and Collateral
• Only Information needed to understand and clarify
issues identified during RDL review.
• Add information about personal income sources
• What you know about the business that we may not
capture from the documents in MMS

12. Loan Officer Recommendation
• Character & Commitment Assessment
• Your relationship with applicant during the
application process
• Your experience during collateral inspection
• Your assessment of the commitment toward the
business and to repay the loan.

13. Tips to PERSONALIZE your
recommendation
• Who are the borrowers? What is their relation to the
business? What is their experience in the industry?
• Why should we lend money to this client?
• What are the sources of income (sources of
repayment)?
• What are the loan proceeds being used for? *Be
Specific