#8: Bottoms up Stress Testing: How Front Line Lenders Can Reassess Current Loans | Rob Newberry
We will focus on loan level stress testing with an understanding of pay vs save strategies, a variation of the matrix approach, questions to ask, and how to unwind if you have to. How to answer the question: does this borrower have enough fuel to stay in the air or enough runway if they have to land? Topics discussed in this episode: 2:54 Pay strategies versus Save strategies 5:05 Are you comfortable extending the runway? 6:19 A matrix approach, but different 8:38 Dual loan grading system, then and now 11:00 How the write-up should change 12:20 Questions to ask the borrower 15:48 How has the customer helped themselves? 18:46 Get up to speed with alternate funding sources About Rob Newberry: Rob Newberry has over 20 years experience in the financial services industry including 15 years at Wells Fargo in strategic and leadership roles. He is a Senior Advisor at Abrigo, formerly known as Sageworks, FARIN, MainStreet Technologies, and Bankers Toolbox. Rob is instrumental in developing and assisting community financial institutions with Abrigo's various Credit Risk Solutions. Rob's LinkedIn - https://www.linkedin.com/in/rob-newberry-0199544/ Resources: In this whitepaper, Coronavirus Survival Guide: Loans Under Pressure, we will discuss five simple, proactive strategies that lenders can implement – even during a forbearance period — to ensure as many customers survive and return to financial health as possible. https://www.abrigo.com/whitepapers/coronavirus-survival-guide-loans-under-pressure/ Portfolio Management in Crisis: Coronavirus Implications for Lenders. In this whitepaper, we acknowledge that the challenge for most financial institutions will be how to quantify and document the additional risk they may face. Knowing that there are more questions than answers at this time, lenders can still take specific action during the emergent phase. https://www.abrigo.com/whitepapers/portfolio-management-in-crisis-coronavirus-implications-for-lenders/ Abrigo helps over 2,500 community financial institutions manage risk and drive growth. Learn more and find more resources at https://www.abrigo.com/knowledge-center/ 2018 Credit Risk Readiness Report In this study commissioned by Linda Keith CPA, find out what senior lending and credit professionals thought about our readiness at the end of the expansion, before this pandemic began. Are we more ready or less? What can we do it be more ready? Request the report at www.CreditRiskReady.com Find out more about Linda Keith at: www.LindaKeithCPA.com www.LendersOnlineTraining.com LinkedIn: https://www.linkedin.com/in/lindakeith/