Loan Grading and Review Policy

$175.00

This Loan Grading and Review Policy Template addresses the requirements of a bank, credit union, fintech company, or other type of financial institution to assign appropriate loan grades to effectively rate the overall strength of its loan portfolio, and to implement a timely, independent and accurate evaluation and formal loan review process of all loans.  See more information about this product below.  In addition, we recommend adding a Product Update Protection Plan to your shopping cart to ensure you automatically receive an updated version of this policy template every time it is revised by us via e-mail within one year from the date of purchase.

Loan Grading and Review Policy

This Loan Grading and Review Policy Template addresses the requirements of a bank, credit union, fintech company, or other type of financial institution to assign appropriate loan grades to effectively rate the overall strength of its loan portfolio, and to implement a timely, independent and accurate evaluation and formal loan review process of all loans.

Table of Contents

  • Purpose and Contents – Topic 1
  • Policy Statement – Topic 2
    • Loan Grading Policy Statement
    • Loan Review Policy Statement
    • Enforcement
    • Exceptions to Policy
  • Credit Administration and Committee Responsibilities – Topic 3
    • Credit Administration
    • Directors’ Loan Committee
    • Special Assets Committee
  • Loan Grading System – Topic 4
    • General
    • Loan Risk Grade Categories
    • Upgrade Procedures
    • Downgrade Procedures
    • Split Grade Procedures
  • Automated Credit Scoring – Topic 5
    • General
    • Credit Scoring Guidelines and Methodology
    • Exceptions to Underwriting Decisions and Override Authority
    • Model Documentation
    • Model Management and Tracking
    • Program Reporting
  • Loan Officer Responsibilities – Topic 6
    • General
    • Supporting Information
    • Guarantees and Third Party Support
    • Collateral
    • Terms and Documentation
    • Other Considerations
    • Credit File Availability
  • Loan Review System – Topic 7
    • General
    • Objective
    • Secondary Review and Credit Denial
    • Quality Control and Assurance
    • Loan Review Scope
    • Depth of Transaction or Portfolio Reviews
    • Other Factors and Conditions
    • Qualifications of Loan Review Personnel Standards
    • Independence of Loan Review Standards
    • Frequency of Review Standards
    • Review of Findings and Follow-Up Standards
    • Communication and Distribution of Results
    • Internal Loan Review

Recent updates to this product:
03/18/24 Update
Eliminate and/or modify references to the term “Troubled Debt Restructuring” (TDR) with a “Borrower Experiencing Financial Difficulty.”
06/01/23 Update
Eliminate references to allowance for lease and loan losses (ALLL) which was replaced by current expected credit losses (CECL).

This Loan Grading and Review Policy Template (approximately 32 pages) is available to purchase from BankPolicies.com in Microsoft® Word format.

Want to ensure your purchase from BankPolicies.com remains current? Add a Product Update Protection Plan to your shopping cart to ensure that you will automatically receive an updated version every time it is revised via e-mail within one year from the last date of purchase. This timely and cost-effective solution ensures that you stay on top of federal regulatory changes and industry recommended best practices.

When updates are made you will receive detailed information regarding why the product was updated and what has changed within the product in our Product Update Notification e-mail correspondence. This enables you to make an informed decision on whether to make any changes to the policy or procedure you implemented for your financial institution from the revised template.

BankPolicies.com provides your financial institution with the best bank policy template products available in the industry. You will always be up to date with the latest changes to bank policies and never have to worry about being out of compliance with the various laws, rules and regulations issued by the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Federal Reserve, Office of the Comptroller of the Currency (OCC), or other federal regulatory bodies that may apply to your organization.

Our dedicated staff of career banking industry professionals are ready to keep your financial institution up to date with the latest bank policy standards and industry best practices. Purchase your bank policies from us today and rest easy knowing you have the right team helping you and your organization stay compliant. We look forward to earning your business for all of your bank policy needs.

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