Financial Consulting

Commercial Lending

For Creditors:      We can assist with commercial loans in a number of ways, from early financial assessment of the borrower to loan structure, closing and if necessary collection efforts. Representative types of credit include business lines of credit and terms loans, commercial construction loans/projects and term real estate finance. We also assist with underwriting of complex credits (see the Credit Underwriting section below)

For Borrowers:     We can help you assess the potential of a proposed business plan, review infromation and assess viability of a business you are considering purchasing and assist you with completing a package of information for submission to a potential lender.

Credit Underwriting and Loan Policy

WIth more than thirty years of experience developing and managing commercial loan portfolios, auditing loan files and managing and collecting problem loans, we have the experience and knowledge to help you improve your credit underwriting standards through staff training, revisions to your policies and procedures or contract underwriting of your in-house originated loans. We place a premium on proper credit structure and risk pricing and combine this with an open-minded approach that is designed to meet the borrower's needs while maintaining high credit standards.

Our experience also provides a solid foundation from which to assist you with improving your loan policies and procedures. Whether you only need a third-party review of your commercial loan portfolio prior to an exam or you want to draft an entirely new policy manual, we can help.

Problem Loan Resolution (Special Assets)

Sometimes, the best laid plans do not work as expected and a loan cannot be repaid as agreed. The resulting problem loan (or special assets) loan often requires extensive and specialized attention in order to maximize the recovery to the lending institution. We have the skills, background and contacts to efficiently handle the many tasks that arise in the administration of a problem loan. Let us take time-consuming activities like meeting with defaulted clients, management of legal efforts, collateral valuations and liquidation out of your lenders' hands so they can focus on revenue generation and we can focus on minimizing loss exposure.

Expert Witness Services

We provide expert witness services to atttorneys around the country, concentrating in matters involving commercial loan defaults, credit underwriting, loan policy, bankruptcy plan confirmation and certain types of fraudulent activity. Specific areas of emphasis in these categories include business and commercial real estate loans, loan balance calculation vis-a-vis defaults and foreclosure proofs of claim, loan documentation and the use of 11 U.S.C. §1111(b) to oppose bankruptcy plan confirmation.

Representative Engagements

The following is a partial list of the kinds of financial consulting we have undertaken:

Lender Liability Claim post BK ($750MM)

Worked with other consultants in preparing complete review of documents and consideration of underwriting and bank actions under construction loan. My report was subsequently included in the master report as submitted to the court. Case is pending further action/judicial review etc. Original judge retired during case; timeline under new judge not yet resolved.

Fiduciary Fraud (Commercial Real Estate Loan Specific - $250MM Fraud, $10MM loan)

Provided expert review and analysis of all documents, credit underwriting memoranda, loan policy and multiple depositions of bank and non-bank personnel in the lending aspect of a $250MM fraud perpetrated over a period of twenty years. Report included opinions on adequacy of underwriting, compliance with policy, documentation and contribution if any to the larger fraud.  Also pointed out several other issues that were identified in my review but were not part of the scope of services within the engagement. Case moved to settlement shortly before trial.

Large multi-property construction loan default ($35MM in gross balances)

Completed review of documents and correspondence involving multiple loans to related borrowers. Reviewed complaints and counter-complaints and provided reports with respect to timeline of events, balances owing, issues of bad boy clause enforcement for contingent guaranty (enforceable), enforcement of terms governing loan participation agreements, support for summary judgment for dismissal of mechanics lien claims (all dismissed with prejudice). Testified with respect to balances owing, calculation of deficiency balance.

Defaulted A&D construction loan ($5MM)

Completed review of all documents and correspondence re: loan default and outstanding lien claims. Settled with various claimants and received summary judgment based on calculation and testimony regarding deficiency balance owing. Testimony accepted re: management of loan under C&D letter from the FDIC prior to bank failure and balances owing on note – borrower claims dismissed with prejudice. Successfully maintained enforceability of guarantees.

Commercial loan default ($5.5MM)

Completed review of all documents, correspondence and financial statements with respect to failure of borrower. Worked with counsel to prepare and execute prepackaged BK filing to preserve bank claims. Defeated all sub-claimant claims and maintained enforceability of guarantees post filing. All reports accepted by court.

Defaulted Car Wash Term RE Loans ($4MM)       

Completed review of all documents, correspondence and financial statements with respect to failure of borrower. Worked with counsel to prepare responses to BK filing to preserve bank claims. Testified in court re: underwriting, loan default, recoupment under proposed plan, etc. Successful in defeating BK and taking ownership of property.

Private Party Real Estate Mortgage Case              

Reviewed all documents and correspondence. Reconstructed payment schedule and application of payments per term of note to determine balance owing at default. Report of balance owing accepted by court.

Alleged Banker Fraud

Reviewed documents and reports involving allegations of fraud by bank lender. Determined that activities were consistent with bank expectations and policy, leaving no evidence of intentional fraud. Case settled prior to trial.