Commercial Loan File Review Checklist

Inspection checklist for reviewing a commercial loan file for completeness, including credit memo, financial statements, collateral documentation, approvals, and required closing records.

File Identification and Review Scope

• Loan file identifies borrower, guarantor(s), and loan number
  Confirm the file is clearly labeled and traceable to the correct transaction.
• Review type and review date are documented
  Record whether this is a pre-approval, pre-closing, post-closing, or periodic file review.
• Loan purpose and product type are documented consistently across the file
  Verify the stated purpose matches the credit memo, application, and approval documents.
• Required file checklist or index is present
  Confirm the file includes a checklist, index, or equivalent control document.

Credit Memo and Approval Authority

• Credit memo is present in the file
  A complete credit memo should support the underwriting decision.
• Credit memo includes borrower analysis, repayment source, and risk assessment
  Verify the memo addresses cash flow, leverage, guarantor support, and key risks.
• Approval authority matches the approved amount and policy limits
  Confirm the signer or committee had authority for the exposure and any exceptions.
• Approval date and conditions are documented
  Check that approval timing and any stipulations are clearly recorded.
• Policy exceptions or covenant exceptions are identified and approved
  Any exception should be clearly described, justified, and approved per policy.

Borrower Financial Statements and Tax Documentation

• Current financial statements are present for the borrower
  Include the most recent available balance sheet, income statement, and cash flow statement when applicable.
• Current financial statements are present for guarantors, if required
  Verify guarantor financials are included when required by policy or underwriting.
• Financial statements are signed, dated, and within policy recency requirements
  Confirm the statements are current and properly executed.
• Tax returns or tax transcripts are present when required
  Check for business and/or personal tax documentation as required by underwriting.
• Borrower financial analysis supports repayment capacity
  Assess whether the financial package supports the proposed debt service.

Collateral Documentation and Perfection

• Collateral description matches the loan structure and approval terms
  Verify pledged collateral is consistent across the note, security agreement, and approval.
• UCC search or title evidence is present, as applicable
  Confirm lien search results or title evidence are included for the collateral type.
• Collateral valuation or appraisal is present and current
  Verify valuation support is present and within required timing standards.
• Insurance evidence is present and meets lender requirements
  Check for hazard, liability, flood, or other required coverage and lender loss payee language.
• Perfection or filing status is documented for all required collateral
  Confirm filing, recording, or control steps are documented and complete.

Closing Conditions, Covenants, and Ongoing Monitoring

• All closing conditions required before funding are satisfied or tracked
  Verify any outstanding conditions are clearly documented with responsible owners and due dates.
• Covenants, reporting requirements, and ticklers are documented
  Confirm the file includes covenant monitoring and recurring reporting requirements.
• Material deviations, waivers, or post-approval changes are documented and approved
  Any change to structure, collateral, pricing, or terms should be supported by approval evidence.