Can you help us start an MBL program?

Yes, we provide sample policies and procedures for financial institutions starting an MBL program. Our staff is available to assist in every facet of an MBL program. If you need more intensive on-site consulting, we can recommend excellent resources that have assisted many credit unions in building and executing a business plan.

What about assistance with policies?

We are happy to provide sample policies (Commercial Business Lending, Participations, Appraisals, Classified Loans and Workouts). The sample policies are updated as regulations change and provided at no extra charge. If you would like to use a different policy we will review it and provide suggestions.

Can you help with underwriting business loans?

Lucro has 16 underwriters analyzing loans for our partners. Experience ranges from 5-30 years with varied backgrounds from commercial bank management to bank examiner. We will assign the right skill set to your loan request based on dollar exposure and credit risk. Very few CUSO’s can match the breadth and depth of our staff. Learn more about our underwriting services here. 

Can you prepare our commercial loan closing documents?

Our operations area has seven document preparation specialists that prepare commercial loan documents compliant in all 50 states using WoltersKluwer's Compliance One software. As licensed users, our clients have a $1,000,000 compliance guarantee from Wolters Kluwers. Learn more about our document prep services here. 

Who handles the appraisal process?

Part of our document preparation procedure is the bidding, ordering and review of commercial appraisals. All you need to do is give us your approved appraiser list (if you don’t have one we can help) and we take it from there. Our independence in the process ensures regulatory compliance. We also do the same for environmental reports; we will bid order and review those as well.

How can I be sure my data processing system can handle commercial loans?

Many of our clients have had the same concerns. Most find their existing systems can manage the process. If for any reason you need help, we can service your loans on our commercial loan platform. We service various portfolios for our clients with fees ranging from 35 to 55 basis points.

Do you help with regulatory issues?

A few of our clients have come to us with this problem. They had deficiencies in their underwriting, documentation or servicing that caused issues with a state or federal exam. We will put a plan in place to review and re-document some or all of your loans that should provide immediate relief with your regulators. Once the problems are resolved, our ongoing service should minimize issues with future exams.

What success metrics do you have that would help me reassure my board about the risks associated with business lending?

Certainly, the potential exists for a large dollar problem loan if you venture into commercial lending. We are the only CUSO that publishes our delinquency statistics on our web site. All loans aren't perfect but we can point to a very solid track record of Lucro partner credit unions with delinquency and charge off numbers well below the industry average.

Lucro Delinquency Performance through June 2020
Lucro Net Charge Off Performance through June 2020