Real Estate Portfolio Analysis
In the context of a sale of the portfolio to a third party, the Real Estate experts at Deloitte reviewed all the performing and non performing mortgage-backed loans of a major bank’s real estate division (total amount of outstanding loans in excess of 1 billion EUR). As a first step, they reviewed the credit procedures of the bank by:
Analyzing and summarizing its credit policy;
Validating the proper understanding and implementation of the procedures;
Testing a sample of credit files for their compliance with the credit procedures.
As a second step, they summarized their analysis and business recommendations on more than 140 loans files reviewed and provided their comments on the level of the specific provisions recorded in the book of the bank in respect to its non performing loans. This review encompassed an appraisal of the related properties, as well as the definition of a real estate work out plan for the key non performing credits.