RELEASE DATE: JUNE 3, 2024
ESTIMATED DURATION: 60 MINUTES
This course provides an exploration of the rating of credit risk in commercial loan portfolios. Participants will gain an understanding of why NCUA made rating credit risk a regulatory requirement, the board’s role in rating credit risk, and NCUA’s expectations for developing and administering a Loan Risk Rating System.
- Understand the rationale behind NCUA’s regulatory requirement to rate credit risk in commercial loan portfolios.
- Explore the importance of the board’s role in rating credit risk and its obligation under NCUA regulations.
- Familiarize with NCUA’s expectations for developing and administering a Loan Risk Rating System, including:
- Implementing financial reporting and analysis support at loan inception and on an ongoing basis.
- Conducting continuous risk monitoring after loans are booked to assess changes in risk.
- Performing regular internal annual reviews of credit to ensure the accuracy of risk ratings.
- Incorporating both qualitative and quantitative assessments of risk into the rating process.
- Differentiating between “Pass” and “Adversely classified” ratings and understanding their implications.
- Recognizing the importance of third-party or independent reviews in validating risk grades and risk management practices.
MEET THE SUBJECT MATTER EXPERT
Vin Vieten is a Retired NCUA Program Officer. He is a graduate of University of Maine with a BS degree in Economics. He has had an extensive career with over 28 years of experience as a financial manager in banking. His credit training emphasized financial analysis to develop financing packages to meet the needs of the borrower. He has used his experience to establish commercial lending departments in two financial institutions, where he managed a team of lenders and oversaw commercial loan origination, underwriting, regulatory compliance and portfolio management. Vin brings his expertise to Mark Treichel’s CU Exam Solutions for a total of 240 years of combined NCUA experience.
