Few words strike more fear into the heart of credit union lending professionals than audit. We all dread them, rarely are they any fun and they’re the cause of more than a few cases of insomnia and heartburn.
Wouldn’t it be terrific if all your member business lending files were always audit-ready? That’s not just pie-in-the-sky thinking. It can be that way; all it takes is the assistance of a qualified credit union service organization (CUSO).
Because many credit unions lack the budget and/or employee experience to fully tackle member business lending the way it ought to be, the looming threat of an SBA audit hangs heavy. Having audit-ready files is critical for SBA loans as they can cause examiners to issue the dreaded “finding” on one of your member business lending loans. If every minute detail isn’t tended to, your credit union can suffer a lower rating in the eyes of the SBA, as well as causing a repair or denial of a guaranty (in a repurchase scenario).
A qualified CUSO provides that extra set of eyes to review all your member business lending documents for completeness and accuracy, dramatically reducing the likelihood an audit will turn up anything of concern. Credit union staff can sleep easier knowing this as it directly impacts their members and their standing with the overall SBA lending program.
The current and future financial health of credit unions depends on member business lending, especially SBA lending. When credit unions employ the services of an experienced and qualified CUSO to review their member business lending documentation, they add directly to the vigor and vitality of credit unions nationwide.