Loan memo
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The loan memo should contain the borrower and guarantor's name and address, a summary of the loan request including amount, structure, rate, term, fees, collateral and value, and conditions. It should also include a summary of sources and uses of proceeds, debt service coverage, cash flow analysis of the borrower and guarantor, and their financial and collateral analysis. The memo concludes with a summary of the request's strengths and weaknesses, the loan officer's risk rating and explanation, environmental requirements, and any documentation or underwriting exceptions.
Loan memo
- 1. Loan Memo The loan memo should contain the following additional information: The borrower and guarantor(s) name and address. A summary of the loan request including a statement of: amount/structure, rate, term, fees, statement of collateral and estimated value, and summary of loan conditions and covenants. A summary of the sources and uses of the loan proceeds (particularly useful for term loans, real estate acquisitions and construction). Summary of debt service coverage and cash flow information. Detailed presentation of: the businesss history, products or services and competitive market; cash flow analysis of borrower and guarantor(s); and financial and collateral analysis of borrower and guarantor(s). Summary of the requests strengths and weaknesses. Loan officer-assigned risk rating with explanation. Environmental assessment requirements. Explanation of any documentation or underwriting exceptions. About the Author Are you looking for applying hard money loan? Consider Boyd Capital Group for your hard money requirements. Make a property investment with the help of their hard money loans services. For more information please visit http://www.theboydcapitalgroups.info/