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Get your ducks in a row: HVCRE risk management

Abrigo

In a recent Sageworks webinar Robert Ashbaugh, senior risk management consultant at Sageworks, discusses High Volatility Commercial Real Estate (HVCRE) lending best practices. Ashbaugh’s presentation begins with a quick summary of why regulators care about HVCRE. How did we get here? What are HVCRE loans?

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Why Diversification Fails at Banks

South State Correspondent

Bankers have been taught to diversify their loan portfolio to reduce idiosyncratic (individual borrower) risk and to stabilize earnings. The thinking is that diversification-induced lending leads to banking resiliency. Regulators are focused on certain CRE concentrations and categories (such as office and multifamily).

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Why Diversification Fails at Banks

South State Correspondent

Bankers have been taught to diversify their loan portfolio to reduce idiosyncratic (individual borrower) risk and to stabilize earnings. The thinking is that diversification-induced lending leads to banking resiliency. Regulators are focused on certain CRE concentrations and categories (such as office and multifamily).

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What's With Regulator Agita Over Bank Commercial Real Estate Lending?

Jeff For Banks

And regulators are getting anxious. Today, I read an American Banker article on how a multi-billion dollar bank is going to ramp up its business lending. Reading between the lines, this bank is likely over the CRE guidance levels, and were probably getting grief from their regulators about it. Anxiety, anxiety, anxiety.

Lending 60
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Stressing the importance of stress tests

Abrigo

The reports were positive: all 31 stressed banks “passed,” showing that they are stronger than they have been at any time since the tests began in 2009, the Fed reported. During examination time, regulators are increasingly looking at a bank’s stress testing processes and resulting capital plans. ” Blog Bank'

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Trusting Machines To Trust The Right Credit Applicants

PYMNTS

Blue Suit would listen to the customer’s pitch and decide whether to lend that person money. Thus, in 2009, ZestFinance was born. In Merrill’s experience, regulators have been cautiously interested in machine learning for underwriting; they simply lack the proper framework to understand the new math. Always a blue suit.

Lending 100
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LendingClub Settles With SEC, DOJ

PYMNTS

The DOJ investigation centered on whether LendingClub had – between January 2009 to September 2010 – misled its FDIC-insured loan originator, WebBank , leading the bank to underwrite over 200 loans that did not conform to the bank’s lending requirements. lending marketplace. The DOJ Finding. Attorney Alex Tse. “We

Lending 135