Business Loan Program Administration

Policy Development

MBFS works on-site or remotely with credit union management to develop a business loan policy that aligns with the credit union’s credit culture, strategic goals, and NCUA and State regulatory guidance.

Training

MBFS offers comprehensive training programs to credit union Boards of Directors and senior management on a wide variety of topics. The training is delivered in multiple formats including online webinars and regional in-person training.

Credit Union Shared Relationship Managers

One of the biggest challenges for credit union business services programs is hiring and retaining skilled, qualified candidates cost-effectively. To address this need, in 2015 MBFS began offering credit union clients a Shared Relationship Manager Service. In this model, MBFS hires a business lender to work in a geographic market shared among three or four credit unions. All participating credit unions share in new loan originations in a round-robin manner, and may choose to purchase a portion of the loan. Coupled with the NCUA’s new business lending regulations, this system allows credit unions to efficiently grow their portfolios of both member and nonmember business loans—the latter of which do not count against the business lending cap—at an affordable cost.

MBL Participation Lending

MBFS Relationship Managers provide both whole and participation loan opportunities for credit union partners. These opportunities may be located in the local geo-region and/or nationwide for credit unions with an enhanced risk management policy. The NCUA’s new business lending regulations allow credit unions to efficiently grow their portfolios of both member and nonmember business loans, the latter of which do not count against the business lending cap.

Business Loan Underwriting and Credit Services

INITIAL CREDIT ANALYSIS

MBFS underwrites new loan requests for a wide variety of traditional loans. The depth of analysis is based upon the size of the loan request, the complexity of the borrower, and whether the loan qualifies as a commercial loan or member business loan under NCUA definitions.

CREDIT ANALYSIS REVIEW

MBFS offers its expertise to credit unions that are desirous of having a whole loan or loan participation credit memo reviewed by an independent third-party. These reviews are prepared utilizing the credit union’s credit policy.

ANNUAL REVIEWS

MBFS manages the annual loan review process every step of the way. For loans requiring an annual review, MBFS manages deadlines and requests updated financials from members. MBFS then prepares the annual reviews on behalf of our credit union partners. The level of detail and depth depends upon the client credit union’s loan policy requirements and the size and complexity of the lending relationship.

PORTFOLIO MONITORING

MBFS is proud to offer an enhanced portfolio monitoring service. The service is designed to closely track borrower relationships for material changes that may not show up in annual and interim financial statements, through the collection and review of business and personal credit reports, site visits, line of credit activity, and non-payment of real estate taxes. In addition, MBFS compiles portfolio-level reports to observe changes in portfolio concentrations, loan quality trends, and market conditions that may impact credit exposure and risk.

Closing and Documentation Services

MBFS assists its credit union clients with the loan closing process by ensuring all conditions of closing are satisfied—including appraisals, title insurance, environmental reports, and UCC filings. MBFS’ team works closely with the credit union’s staff to ensure a smooth closing process, while also monitoring key exception items. MBFS uses LaserProTM to produce its business loan documents.

Business Loan Servicing

Many core systems used by credit unions were not designed to support business loans, business deposit accounts, or participation loans. To help address this significant challenge, MBFS offers its client credit unions in-house business loan servicing. MBFS has established direct interfaces with several leading core systems to facilitate the daily export of business loan portfolio information, as well as support member payments at the teller line or within credit union home banking platforms.

SBA Loan Support

MBFS has developed an internal team to bring the disparate functions of SBA programs into one cohesive service model, including marketing, assistance with SBA eligibility review, processing, underwriting, closing, servicing, and post-closing loan review.

Our process incorporates three dynamics into the SBA process – Speed, Simplicity, and Peace of Mind. Our SBA Administrator works with the lender and borrower at every step of the process to ensure that the service you expect is delivered. Every time. We provide a smoother process for lender and member as MBFS tracks each loan throughout the process, communication and updates are at your fingertips, so the credit union has better control of the loan all the way through and the process is built with redundancies to protect your guarantee. Our SBA administrator is available during the pre-application stage to discuss eligibility and terms of the loan as well as SBA SOP compliance.

MBFS also helps to train lenders to identify SBA opportunities and use internal business development networks at origination. Once an opportunity is identified, our system streamlines management of the SBA loan program from loan processing through each subsequent phase in the life of each loan.

Consulting Services

MBFS offers consulting engagements focused on a wide range of strategic topics including product development, operational processes and procedures, sales techniques, marketing strategies, and risk management. These programs are customized for the specific needs of the individual credit union and include:

• Elevating Business Lending Programs utilizing proven strategies to expand and maximize business lending offerings.
• Enhancing Financial Performance by drawing from extensive experience in boosting revenue, managing product and service offerings, and achieving maximum efficiencies.
• Navigating Complex Lending Landscapes by assisting with loan workouts, special assets and portfolio management, and interim business lending management. MBFS Executive Management have extensive experience managing collections, special assets, loan modifications and restructuring, as well as managing the foreclosure and REO processes.

Education and Training

MBFS offers credit unions customized training presentations, educational webinars (currently offered three times per year) and its bimonthly podcast entitled, Credit Union Conversations.