Challenge: A $14 billion Farm Credit Bank requiring asset validations of its member Associations in six states.
RWG Actions: RWG began its engagement with a $14 billion Farm Credit Bank in 2009, assisting the Bank with independent asset validations of its member Associations located throughout Texas, New Mexico, Mississippi, Alabama and Louisiana. The Bank is a part of the nationwide Farm Credit System, established by Congress in 1916, and is regulated by the federal Farm Credit Administration. RWG has been continuously involved in providing an independent, third-party assessment of such factors as: risk rating accuracy; adequacy of documentation, structure and repayment sources; compliance with prudent lending practices and procedures; and an assessment of overall credit administration of each member Association.
Results: Ongoing recommendations from RWG asset validations assist the board of directors, elected by the customers of the 17 lending cooperatives that own the Bank, and the Bank’s senior management team, ensuring that loan funds are disbursed in a safe and sound manner.