Services
Member Business Lending (MBL) Planning and Implementation
Octant Business Services will assist in both the planning and implementation of a Member Business Lending program. From the development of a credit policy that meets regulatory requirements to the establishment of complementary business services, Octant will support a total program implementation.
MBL Underwriting
Octant will perform a comprehensive quantitative and qualitative analysis of each loan request applying time-tested credit underwriting techniques. Octant will deliver a thorough and understandable recommendation that includes the following:
- Appropriate credit facility and loan structure that considers both the borrower’s ability to repay and adequate collateral protection for the credit union;
- Source and use of funds;
- Global cash flow analysis;
- Collateral analysis that may include an appraisal and/or environmental risk evaluation;
- Borrower(s), co-borrower(s) and guarantor(s) analysis that includes a review of credit histories, income/expense and net worth
Upon approval of the loan application by the credit union, Octant will provide a formal commitment letter as well as request, review and comment on any/all environmental or appraisal due diligence reports. When all pre-closing conditions are satisfied, Octant will facilitate the scheduling and closing/funding of all loans.
MBL Servicing and Portfolio Administration
After each loan is approved, closed and funded, Octant will review all closing documents to ensure compliance with the approval memorandum/commitment letter and board the loan on its commercial loan accounting system. Other servicing activities that Octant can provide are:
- Monthly billing and ACH payment collection;
- Generation of regulatory compliant monthly reports;
- Property insurance verification and real estate tax tracking;
- Collection of required financial documentation, performance of annual reviews and risk rating changes;
- Credit and collateral file maintenance
Octant dedicates its resources to ensure that your loan portfolio is managed professionally and efficiently. Communication with clients is a priority and ensures that both Octant and the credit union are aware of all loan payments, delinquency status, member correspondence and any other servicing details as they occur.
