What Is Collateral Management in Commercial Lending, And Why Getting It Wrong Is Getting More Expensive?
  Collateral management is the process of tracking, valuing, monitoring, and managing assets pledged to secure a loan. It helps banks, credit unions, and commercial lenders ensure collateral remains properly documented, adequately valued, and sufficient to support the outstanding balance. Collateral may include real estate, equipment, inventory, accounts receivable, vehicles, and securities. For example, […]
Collateral Risk Management in Commercial Lending: Why Loan-Level Thinking Isn’t EnoughÂ
A community bank completed its quarterly portfolio review with a clean result. Every CRE loan in the book showed an LTV ratio within policy thresholds, every file contained documentation of a completed appraisal, and the credit team moved on. During the subsequent regulatory examination, examiners identified that sixty percent of the institution’s non-owner-occupied office […]