Challenge: Texas-based, $1.5 billion state chartered credit union placed on an enforcement action by the NCUA.
RWG Actions: RWG began its engagement with a Texas-based credit union in 2007 just prior to the enforcement action. In the first year of the engagement, RWG reviewed 95% of the funded loan portfolio outstanding, assessing not only risk rating accuracy, but also the quality of credit underwriting, portfolio management and problem loan management. In tandem with the loan review, RWG provided guidance and assistance in the development of appropriate loan policies and procedures with a focus on Allowance for Loan and Lease Losses and establishing a robust loan workout process.
Results: Our work with the credit union was validated by the NCUA both prior to and after the enforcement action was put into place, and RWG was instrumental in assisting the credit union ensure loans were originated and managed in line with safe and sound lending practices.