As a commercial loan review provider to over 100+ Institutions, CEIS Review is able to aggregate the findings of our engagements then look to identify any emerging trends as well as provide some insightful commentary on our observations from a portfolio quality & regulatory standpoints. Below are the findings from 4Q 2019.
- Overall weakened underwriting analysis over the past several years with increased risk appetite; while allowing more aggressive deal terms and structures.
- Regulators will be focused on more robust and thorough credit underwriting analysis including financial analysis and trends, collateral valuation, source(s) of repayment and refinancing risk. Increased focus will also be on stress analysis for individual loans with recommended assumptions such as interest rates, vacancy, cap rates, margins, etc. Overall analysis seems to be weaker on C&I
deals than CRE related.
