The Asset Summary Report (ASR) encompasses an overview of the loan (or property). It is a very useful tool for examining a portfolio of loans, assessing adherence to original loan terms and conducting quarterly loan reviews.  It is usually constructed as a short form 2-4 page document and includes:

  • Summary of original loan terms and its current status
  • A description of the collateral
  • A breakdown of capital Stack showing original terms, revised terms, additional equity infused, credit information (borrower and principals information, financial summaries, guarantees, updated information if any)
  • Market and neighborhood information, including positive and negative changes since loan origination
  • Strengths, Weaknesses
  • Issues and asset plan over next quarter
  • Updates from previous quarter
  • Map page
  • Updated property pictures

The ASR, although a brief summary of the asset, enables a detailed review of the asset, changes from previous quarters and a benchmark of whether asset quality is deteriorating or performing as agreed.  This is a useful tool for aiding the discussion of impairment, reserves or write-downs.