SBA Put Its Loan Portfolio At Risk

David Bauman, in a November 13, 2019 article in cutimes.com, writes “The Small Business Administration failed to review many of its high-risk lenders between 2015 and 2017, placing billions of dollars of loan guarantys (sic) at risk, the agency’s Inspector General said, in a just-released report.”

As government loan-guaranty agencies take on more risk, credit unions need to be aware of the impacts this could have on their loan portfolios and earnings. It is important to carefully manage the risk in loan portfolios.

TCT’s Credit Migration tool assures loan risk is managed appropriately by reporting those borrowers showing signs of possible loan default long before those borrowers show up on delinquency reports.