With loan modification requests expected to increase due to coronavirus, many banks and credit unions are looking for ways to establish effective processes to deal with the influx. Using Abrigo's solution, financial institutions will be able to triage the new requests quickly while successfully maintaining credit risk and profitability benchmarks.
Loan Modification Software
Drive efficiency in loan workout process.
Utilize a single platform for a consistent process.
Special assets management and loan workouts — either due to COVID-19 or other reasons — can be resource-intensive, consuming valuable lender attention while escalating risk with inconsistency, errors, and assumptions in calculations. Regulatory scrutiny related to TDR decisions and documentation is likely to increase. Institutions need a consistent and repeatable process.
Advantages of Abrigo's Special Assets Management Solution
Faster, more automated workout process.
Increased Efficiency
Leverage employees' time and talents by automating and streamlining document collection, tracking, storage, etc.
Reduced Risk
Ensure consistency in policy execution, improve audibility for exams, and evaluate NPV of modification decisions.
Refined Reporting
Track loan status via
dashboarding and report on them
for board, executives.
"Abrigo’s global analysis ensures accuracy, and the narrative reports provide time-savings and consistency. Our examiners have commented that they like the uniformity our software solution provides to our credit analysis."
Kevin Atwood, Executive VP at Bank of Cadiz and Trust Company
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Features and Functionality of the Special Assets Management Solution
Have confidence in your loan policy execution.
The Abrigo platform gives financial institutions a faster, more automated process so credit staff have more time to focus on borrower relationships, new business, and analysis.
Identify At-Risk Loans
Review borrower info and track the resulting interactions.
Modify the Loan with the Borrower
Ensure consistency and audibility of the entire process.
Trigger TDR Classification
Determine and document if the modification results in a TDR.
Calculate NPV Impact
Understand impact to capital planning and the Allowance.
Integrated Systems with Abrigo
Expertise to assist during recessionary economies.
Sometimes automation isn’t enough and the bank or credit union staff needs additional expertise to augment their limited availability or experience. Abrigo’s Advisory team has specific engagements related to loan modifications to assist not only with process but also with portfolio-specific questions.
Resources on Loan Workouts
5 Strategies Lenders Can Implement for Problem Loans
Five simple, proactive strategies that lenders can implement to ensure as many customers survive and return to financial health as possible.
Managing Coronavirus Loan Workouts at Your Institution
Our experts discuss the importance of establishing and applying consistent criteria for triaging loan workouts during the pandemic.
Getting Your FI in Shape for Loan Workouts
Financial institutions across the country should establish effective plans for managing loan workouts.
