Frank emphasized the need to take steps to protect loan collateral must be performed before and after the funds are committed. He noted the importance of identifying possible fraudulent borrowers as early as possible to protect the value of the loan collateral. He further stressed performing regular reviews of a borrower’s financial statements and performing site visits of the collateralized property at least annually. Frank indicated that lenders must be prepared to act quickly to recover from a loan that has become distressed. Banks must take steps to prevent collateral deterioration and be open to offers made by the borrower to repay the loan.

Frank recommended obtaining the services of a forensic accountant to assist the bank in identifying a borrower that may have intentionally or fraudulently conveyed assets or to assist the bank in tracing or recovering collateral. Frank concluded by answering a number of challenging questions from the Members in attendance.

Tom Scudese from UBS Financial Services presented Mortgage-Backed Securities – Support and Guidance for Community Banks following the full course dinner. Tom has extensive experience providing investment services to financial institutions with specific emphasis on fixed income securities for the mid-sized community bank.