Beyond Compliance: Blooma’s Accelerated Approach to CRE Risk Mitigation

The Federal Deposit Insurance Corporation (FDIC) recently issued a crucial advisory emphasizing the significance of robust capital, appropriate credit loss allowances, and resilient credit risk management for institutions with commercial real estate (CRE) concentrations. In light of these guidelines, Blooma’s innovative solutions can play a pivotal role in helping lending institutions navigate these challenging economic times.

FDIC Advisory Highlights:

• Strong Capital and Credit Loss Allowances: Institutions with significant CRE concentrations should maintain strong capital levels and ensure that credit loss allowances are appropriate. Blooma’s Portfolio Intelligence suite assists in automating critical activities and provides real-time analysis based on the latest market data, enhancing risk management. Blooma’s deal screening capabilities aid lenders in evaluating whether a deal aligns with their lending criteria and validates projections on a property’s performance using up-to-date market data. This comprehensive assessment provides lenders with a clearer grasp of the property’s investment potential relative to the capital needed to facilitate the loan.

• Robust Credit Risk Management: The FDIC advises institutions to manage construction and development (C&D) and CRE loan portfolios closely, maintaining updated financial and analytical information. Blooma’s AI-powered platform facilitates personalized deal scoring, valuation modeling, 3rd party data aggregation, and comprehensive financial analysis, streamlining the risk management process.

• Loan Workout Infrastructure: The FDIC encourages institutions to bolster their loan workout infrastructure. Blooma’s platform offers stress testing capabilities, allowing lenders to identify and mitigate heightened risk areas in their portfolios.

• Liquidity and Funding Management: Institutions are urged to maintain adequate liquidity and diverse funding sources. With Blooms lenders can manage their assets and liabilities to maintain a balance between short-term and long-term obligations. They match the duration and cash flows of assets (like loans) with corresponding liabilities (funding sources), reducing liquidity risk.

Blooma addresses common challenges faced by CRE lenders:

• Time-Consuming Processes: Manual extraction of CRE loan data from documents is laborious and time-consuming. Blooma’s data extraction automation software streamlines this process, providing accurate results in minutes.

• Data Accuracy: Blooma’s hybrid solution combines extraction/AI technology with a ‘human in the loop’ approach. This ensures 100% accurate results, with AI models continually improving through user corrections.

• Efficiency and Speed: With Blooma, deals are ready for review in less than 2 hours. The platform’s deal scoring system provides an immediate read on the quality of the deal, making you the fastest in town.

• Comprehensive Portfolio Monitoring: Blooma’s Portfolio Intelligence suite offers dynamic dashboards, stress testing, business intelligence, and prescriptive insights. This enables lenders to monitor portfolios efficiently and make informed decisions confidently.

Ready to strengthen your CRE lending practices and get ahead of regulatory guidelines? Explore Blooma’s innovative solutions today to streamline processes, enhance data accuracy, and gain comprehensive portfolio intelligence. Say goodbye to manual struggles and welcome Blooma as your new ally in navigating the complexities of CRE lending. Contact us for a personalized demo and transform the way you manage your commercial real estate portfolio.

Or email, hello@blooma.ai for more information.