Dallas Firm Sets Up Risk Management Wing for CUs
The Dallas-based firm said it will offer credit unions risk management services along with strategic planning, management consulting and regulatory compliance.
"The crash of the U.S. housing bubble along with a deteriorating labor market have brought on big challenges to credit unions where loan delinquencies, bankruptcies, repossessions and loan charge-offs are at an all time high," said Christopher Garcia, principal at Avidiant.
With that in mind, the consulting firm said one of the key offerings will be a full loan review audit process. The review evaluates the credit unions lending policies, procedures, and quality control activities. Avidiant's team will look for any significant credit quality issues as well implementing a strategy for conducting the loan review, according to the company.
Other areas considered in the credit administration assessment include loan authorities and the approval process, loan underwriting and the credit analysis function, loan documentation standards and systems, internal loan grading systems and delinquency reporting and collection efforts.