Loan Reviews and the Function of Expert Witness Services
Attorneys can utilize expert witness services as a way to strengthen their position in their case and also to expand their research capabilities. When it comes to forensic accounting, it is sometimes necessary to evaluate a borrower’s or financial institution’s lending practices. In this article, we will discuss loan reviews and how an expert witness can incorporate this practice into their services.
The Function of the Loan Review
On both sides of the borrower-lender dynamic, issuing a loan incorporates a high degree of risk. Lenders have to be aware of acceptable lending practices and ensure their processes remain within ethical and regulatory guidelines. At the same time, it is up to the borrower to uphold their side of the agreement and pay back their loans promptly.
A loan review is a service that an independent agency utilizes to ensure the tenets of a loan agreement are being honored. A common practice within the industry involves lending institutions hiring separate entities to perform these evaluations. This ensures the objectivity of the assessment.
Loan review covers many aspects, and it holds both the borrower and lender accountable. Among other things, the critical functions of a loan review include:
Ensuring the Borrower is Up-to-Date with Payments
Evaluating the Integrity of Collateral
Verify Completeness of Loan Documentation
Confirming the Borrower’s Viability in Satisfying the Terms of the Loan
Assessing Whether the Loan Conforms to a Lender’s Borrowing Policies
How Attorneys Might Utilize It
Since the loan review takes into account both the borrower and lender, law firms can utilize these expert witness services as part of their forensic accounting objectives. An expert witness who is knowledgeable in loan review processes can determine if the terms of a borrowing agreement have been violated. This allows legal teams to use expert witness testimony to strengthen their cases.
Loan reviews are an essential function of accounting, as they ensure that all invested parties are adhering to the terms of an agreement. When your legal team must handle a case related to lending, having expert witness services from a knowledgeable professional can prove useful.