Overview: Effective management and administration of commercial loan portfolios requires maintaining up to date information about borrowers and the collateral or businesses that support repayment of the loan. Keeping on top of this information is challenging task that can involve many individuals throughout the organization.
Some of the information that needs to be kept up to date includes:
- Borrower financial statements and tax returns, both personal and business
- Collateral and/or business financial statements
- Collateral and/or business valuations
- Collateral inspections
- Property rent rolls
- Property occupancy
- Tax Payments
- Insurance (all types of policies)
- Loan Ratings
- Credit Reviews
There are two related issues. One is the capture of the information and the second is a ticker system to give reminders of upcoming due dates as well as notice of events that are past due. Ideally, the two should be integrated with each other so that all a user needs to do is enter the updated information and the tickler capability will be updated automatically.
Tickler information needs to be arranged primarily by the contact person that should be notified of pending or past due tickler items. But tickler information should be available on a loan by loan basis as well. It should be convenient to request information by email and by letter, and either media should be able to pull out of the database information about the requested item such as the last date received, next due date, etc.