Credit Union Consulting Services

DFTC offers comprehensive consulting services to individual credit unions and Credit Union Service Organizations (CUSO's) in the areas of risk management and Member Business Lending (MBL) program management. Specific services include credit department creation, loan portfolio review, third-party underwriting, loan underwriting and on-site services.

As NCUA and state regulators place increased scrutiny on the management of MBL portfolios, DFTC can work with your Credit Union to improve your organization's performance and profitability. DFTC has assisted credit unions in turning around MBL programs that have been downgraded or issued Cease and Desist orders. DFTC can effectively assist you in responding to Documents of Resolution (DOR's), Special Actions and other issues that your examiner addresses.

Below is an overview of the specific capabilities that DFTC can deliver in a number of different consulting areas by topic and function.

Credit Department Creation

DFTC staff have experience in creating or enhancing the capabilities of new (or existing) Member Business Lending (MBL) departments. DFTC can assist you to do the following:

• Establish underwriting guidelines as part of the overall strategy of your institution

• Create customized loan presentations and loan reports for senior management

• Design appropriate job descriptions for MBL positions

• Implement risk rating system protocols for underwriting compliance with NCUA and State regulations.

• Assist with Allowance for Loan and Lease Losses (ALLL) calculations and overall portfolio monitoring.

• Develop Policies and Procedures Manuals

Loan Portfolio Review

DFTC can prepare you for your next audit or regulatory exam by reviewing and evaluating your existing MBL portfolio. In order to strengthen the performance of your portfolio and to better comply with regulatory requirements, DFTC will:

• Review and improve your loan policies and procedures

• Create more effective underwriting protocols

• Review your files and origination documentation to include:

• Loan Application

• Compliance with internal policies

• Closing checklist of needed loan documents

• Environmental Questionnaires and reviews

• Collateral review sheet

• Personal Financial Statements

• NCUA compliance checklist

• Loan Presentation format

• Review Risk rating reports and recommend necessary changes

• Analyze compliance with loan terms and conditions

• Review portfolio concentration

• Identify potential losses and the adequacy of loan loss reserves

Third Party Underwriting

DFTC's business lending experts can provide depth and expertise to your credit union's underwriting capabilities. With several decades of experience evaluating the credit needs of business, DFTC can provide whatever level of underwriting assistance your credit union requires. We will:

• Evaluate loan requests for compliance with basic loan underwriting criteria

• Review CUSO participations

• Conduct annual reviews to meet the requirements of NCUA Rule 723

• Complete a credit analysis of existing businesses to determine their strengths and weaknesses

• Analyze ratios and business trends using credit analysis software

• Complete reports for consideration by loan committees

On-site Services

DFTC's consulting services also provide the capability to serve on an interim basis at all levels of credit union management, including the positions of:

• CEO/President

• Senior Lender

• Special Assets Manager

For additional information about DFTC's consulting services, please contact Dana Sumner at dsumner@devftc.com or (603) 217-5173