Collateral Risk Focus of CUNA Lending Council Research
The practice of collateral risk management is the focus of a new white paper from the CUNA Lending Council.
The "Collateral Risk: Insights on Loan Portfolio Monitoring and Management” paper focuses on the causes of collateral risk exposure, and how macro- and microeconomic factors affect collateral risk.
The research also highlights risks specific to certain loan types, proactively managing collateral risk, implementing systems, policies, and procedures, NCUA requirements, data gathering, and bringing the conversation full circle with a discussion about member outreach.
“In an environment in which few financial institutions have been immune to recent dramatic economic effects on loan portfolios and the collateral tied to them, this paper examines how collateral risk management can be utilized,” according to the CUNA Lending Council.