What is Special Assets Department?
Special Assets Department or Bank Workout Group is the department within a lender that handles business loans and other types of funding that are in trouble. When a business has experienced multiple quarters of loses, perhaps missed loan payments or is otherwise deemed too risky for an ordinary business relationship, the Special Assets Department’s intention is to collect on the loan and remove the troubled client from the lender’s portfolio. The Special Assets Department will increase their oversight of the business, increase fees and will impose specific terms in a forbearance agreement that the business must meet in order to stay in good standing. If the business can not meet these goals in a specific timeframe, the lender will begin foreclosure in an attempt to recover loses.