STEP 1*

A basic understanding of credit analysis is needed to attend BAI Loan Review Certificate Program - Course I

COURSE I

  • Purpose of Loan Review
    • What is it?
    • Who needs it?
    • Who does it?
  • Characteristics of a Sound Loan Portfolio
    • Credit policy
    • Loan administration
  • Loan Review Procedures
    • Define objectives
    • Grading system
    • Selection process/determining scope
  • Identifying and Evaluating Sources of Repayment
    • Business cash cycle
    • Analyzing cash flow/SFAS 95/UCA cash flow
  • Evaluating Collateral
    • Establishing loan-to-value
    • Real and personal properties
  • Loan Classification Systems
    • Regulatory guidelines
    • Risk rating system criteria/examples
  • Report Writing and Interpersonal Skills for Loan Review
  • Current Loan Review Topics

*A student may be able to bypass Course I by taking a proficiency exam.

STEP 2

An understanding of UCA Cash Flow concepts is needed to attend BAI Loan Review Certificate Program - Course II.

COURSE II

  • Credit Risk Management
    • Determining risk tolerance
    • Risk supervision
    • Risk monitoring
    • Structuring of an effective risk management process
  • Role of Loan Review
    • Loan policy compliance
    • Early warning function
    • Quality control function
  • Assessing Loan Quality
    • Industry analysis
    • Economic conditions
    • Financial performance
  • Credit Process Flowchart
    • Evaluating the credit process
  • Reporting Procedures
    • To whom are you reporting?
    • Objectives and scope
    • Conclusions and recommendations
  • Loan Loss Reserve
    • Interagency policy
    • FAS 5
    • FAS 114
    • Troubled Debt Restructures
  • Regulatory Viewpoint
  • Current Topics

STEP 3

  • Individual Loan Evaluations
    • Risk assessment
    • Loan grading and classifications
  • Loan Portfolio Analysis
    • Risk assessment
    • Administration
    • Loan loss reserve allocation
  • Credit Process Review
  • Written Communication Skills
  • Documentation Review

STEP 4

AWARD OF A CERTIFICATE IN LOAN REVIEW

The certificate will be awarded to those who successfully complete steps one through three. This signifies that the individual has attained a level of expertise in loan review that is recognized as the industry standard.