TOPIC: Credit

Credit Counseling

Manager at a credit_union ($50MUSA)
Our Credit Union is going to start giving credit counseling now that a few of our employees just received their certificates. I was wondering how other credit unions go about their process. Do you have members that are interested fill out a questionnaire? and also do you have a procedure or guideline that you use for counseling?

    Experian's Income Insight tool

    Manager at a credit_union ($485MUSA)
    Hello~

    We are in the process of reviewing Experian's Income Insight tool and are curious if others are using it for consumer loan underwriting. We are looking at the portion of the tool where the income pulls into the credit report itself. If you are using the product, how you are using it and how did you set policy/procedure for income verification? For example, is it being used more as a validation of what your members are stating they make so you don't need to request a paystub or are you using it in lieu of stated income? What do you do if the figures don't match?

    Thank you!

      Percentage of Declined Consumer Applications (Online vs In Branch/In Person)

      AVP at a bank ($922MUSA)
      Good afternoon, 

      I am trying to gather some data as to what banks are experiencing or seeing in regards to % of declined loans via online applications vs in branch applications. Is anyone willing to share their percentage of declined consumer loans for both? It would be greatly appreciated.

      Thank you,
      Lindsey Lopez 

        Federal Regulatory Agencies Joint Statement on Alternative Data in Underwriting

        Five Federal financial regulatory agencies today issued a joint statement on the use of alternative data in underwriting by banks, credit unions, and non-bank financial firms. "Alternative data" includes information that isn't typically found in a consumer's credit report, including data related to cash flow. 

        Learn more about the joint statement and what this means for your underwriting process here: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20191203b.htm

          Survey Request | 2020 Business Lending Readiness Survey

          How do you expect to manage your commercial lending process in 2020? 📋 Fill out our short survey to help institutions like yours benchmark their strategies against peers and highlight industry goals for the coming year. 

          We aim to assess industry obstacles and evaluate strategies and best practices regarding various areas of the commercial lending process, including risk rating, pricing, underwriting, tracking ticklers, and more. 

          Key questions that the 2020 survey covers includes:
          • Length of time it takes to close a new commercial deal
          • How institutions manage the borrower pipeline
          • How institutions set prices on loans
          • How many labor hours it takes to underwrite a loan
          • How many categories institutions have in their risk rating scale
          You'll be entered to win one of several $25 ☕️ gift cards just for filling it out and you'll be the first to get the results! Thanks in advance for your help. 

          Take the survey! 

            How Community Financial Institutions Can Effectively Implement Loan Origination Software | Webinar | Nov. 19

            Tuesday, November 19 | 2 p.m. ET / 1 p.m. CT
            Register now

            Community financial institutions operate in a world of increasing competition, increasing regulatory requirements, and changing customer expectations. Software and automation can help tackle these challenges. Join us for a free webinar to learn how loan origination software can drive efficiency and, ultimately, loan growth at your institution.

            Key takeaways:
              
            • Current market conditions and trends across the industry  
            • Ways financial institutions can make successful software transitions

            Save your seat!

              FCRA & Human Resources - Procedures for Denying Applicants Due to Credit/Background

              AVP at a bank ($3.4BUSA)
              Good morning, 
              Looking for any policies and procedures, training, or other resources that your institution uses that complies with the notification requirements under FCRA for taking adverse action on applicants for employment due to information in whole or in part of their credit report. Thanks in advance!

                Which CECL methodologies are best for your portfolio?

                Given that the #CECL model is non-prescriptive, banks and credit unions have flexibility in choosing the right CECL methodologies for their institution’s unique data situation. This flexibility often leads bankers to one simple question: Where do I begin?

                In this complimentary infographic, learn about the 7 methodologies available to use and when they are or are not recommended: https://www.web.abrigo.com/cecl-methodologies-cbanc 

                  Free Webinar | CECL and Your ALM Model

                  Wednesday, October 9 | 3 p.m. EST/ 2 p.m. CST
                  Presenter: Rob Newberry

                  Register here

                  As we get closer to implementation of CECL, we want as much information as we can get to help in understanding everything that should be considered in putting together our CECL models.
                  CECL is best thought of as part of a holistic view that focuses on Enterprise Risk Management and not just credit risk alone. It is no longer advisable to operate in silos as you might have done in the past when credit loss reserves were calculated by the Credit Officer for the institution, while Asset/Liability forecasts were in the domain of the CFO. With the need to look at a more forecasted approach to determine credit reserves, it makes sense to leverage some of the assumptions that have been used in the past for developing loan assumptions in your A/L models.

                  Join this free webinar to learn:
                  • How CECL will impact ALM 
                  • Effective capital planning and loan pricing processes
                  • What the changing regulatory landscape is like
                  Save your seat! 

                    Free Webinar | Best Practices for Credit Analysts at Banks

                    Monday, October 21
                    2 p.m. EST/ 1 p.m. CST
                    Register 

                    Current economic conditions seem to suggest that the next U.S economic downturn is on the horizon. With that in mind, it is becoming increasingly important to have the right credit policies and procedures in place to ensure your institution understands its customers and members throughout the lending process.

                    Join this webinar session to learn common best practices for credit analysts when dealing with current and future market conditions.

                    Join to Learn:  
                    • Best practices for loan and financial statement analysis  
                    • How to identify problem loans and the benefits of early detection 
                    • Way to optimize deal flow 
                    Presenter: Ancin Cooley, Principal, Synergy Bank Consulting

                    Save your seat! 

                      Equipment financing policy

                      Manager at a bank ($1.1BUSA)
                      We are looking at adjusting our equipment financing policy. Currently it’s a simple 60 month term/amortization and 80% advance rate. Does anyone do anything differently? Longer terms/amorts for new equipment? Does anyone use useful life as an amortization? If you have any suggestions or policies to share, it would be much appreciated!

                        FastGrade Credit Analysis Software

                        VP at a bank ($431MUSA)
                        Good morning!  I'm curious if anyone uses FastGrade for their credit analysis.  The product has been used for approximately 5 years prior to my hire as the Credit Risk Officer.  I'm looking for users to see if you've experienced some of the same issues we are having.  If you're not using FastGrade would you please share what you are using as I'm also evaluating keeping what we have or changing.  Any feedback is appreciated!  Thanks!   

                          CECL, Portfolio Risk, Credit and Lending Conference | ThinkBIG | September 24 - 26, Orlando, Florida

                          There are only four days left until registration ends for the biggest CECL, portfolio risk, and lending and credit conference of the year - ThinkBIG!

                          When: September 24-26
                          Where: Loews Sapphire Falls Resort at Universal Orlando | Orlando, FL
                          Who: Anyone involved in CECL/ALLL, portfolio risk, or credit and lending. Common titles include CFO, Controller, VP of Finance, Credit Analyst, CCO, CRO, Credit Admin and Loan Admin.

                          Are you managing risk and driving growth at your financial institution? Do you need ideas to think bigger about portfolio risk, CECL, or lending and credit? The ThinkBIG Conference presented by Abrigo was created to give you the educational tools and concrete ideas to Manage Risk. Drive Growth.  

                          Hear from FASB's Hal Schroeder, FINCURA's Max Blumenthal, Q6 Cyber's Eli Dominitz, economist Tom Cunningham, PhD, and a full roster of Abrigo's industry experts at this year's conference. 

                          Be prepared to Think Bigger with insights and information critical to your lending strategies, mitigating credit risk, and the transition to and implementation of the new allowance accounting standard over the course of three days of compelling educational content and networking.  

                          If you have responsibilities related to CECL and the ALLL at your institution, or if you want to know more about how CECL will impact your institution or you want to grow your loan portfolio quicker and more efficiently while driving profitability, this is the one conference this year you cannot afford to miss.

                          Earn up to 14 CPEs! 
                          Register today and save! 

                            Free Webinar: CU Best Practices for Credit Analysts

                            Register today!

                            Current economic conditions seem to suggest that the next U.S economic downturn is on the horizon. With that in mind, it is becoming increasingly important to have the right credit policies and procedures in place to ensure your credit union understands its members throughout the lending process.

                            Join this webinar session to learn common best practices for credit analysts when dealing with current and future market conditions.

                            Join to Learn:  
                            • Best practices for loan and financial statement analysis 
                            • How to identify problem loans and the benefits of early detection 
                            • Way to optimize deal flow 
                            Tuesday, September 10, 2019
                            2:00 PM ET / 1:00 PM CT
                            Presenter:
                            Ancin Cooley, Principal with Synergy Credit Union Consulting, Inc.

                            Save your seat! 

                              Upcoming CECL, Portfolio Risk, Credit, and Lending Conference | ThinkBIG - September 24-26

                              There are only four days left until regular registration ends for the biggest CECL, portfolio risk, and lending and credit conference of the year - ThinkBIG!

                              When: September 24-26
                              Where: Loews Sapphire Falls Resort at Universal Orlando | Orlando, FL
                              Who: Anyone involved in CECL/ALLL, portfolio risk, or credit and lending. Common titles include CFO, Controller, VP of Finance, Credit Analyst, CCO, CRO, Credit Admin and Loan Admin.

                              Are you managing risk and driving growth at your financial institution? Do you need ideas to think bigger about portfolio risk, CECL, or lending and credit? The ThinkBIG Conference presented by Abrigo was created to give you the educational tools and concrete ideas to Manage Risk. Drive Growth.  

                              The conference brings together industry thought leaders and experts, financial institution peers, CPAs, auditors and regulators for three days of compelling educational content and networking. Be prepared to Think Bigger with insights and information critical to your lending strategies, mitigating credit risk, and the transition to and implementation of the new allowance accounting standard.  

                              If you have responsibilities related to CECL and the ALLL at your institution, or if you want to know more about how CECL will impact your institution or you want to grow your loan portfolio quicker and more efficiently while driving profitability, this is the one conference this year you cannot afford to miss. 

                              Earn 14 CPEs! 
                              Register today and save! 

                                Loan Rate Sheets

                                Director at a Company (USA)
                                     I am developing a new tiered loan rate sheet based on borrowers credit scores for our in house mortgage loans and other consumer loan products. Does anyone have a template they have developed that they could share?

                                             Originally posted by an anonymous author with the title AVP Regulatory Compliance and Legal on 13 Feb 2019 to CBANC FI Professionals Community.

                                  Credit Score HMDA LAR

                                  Director at a Company (USA)
                                       When you have an application with a borrower and co-borrower and a credit report is pulled with three credit scores (tri merge) for both borrowers, the score used in making the credit decision is the low middle score. Are you required to report both middle scores on the HMDA LAR or can the bank use it's own discretion and only report the score used in making the credit decision and mark NA for the other applicant?

                                       Originally Posted by Denise Hensley, Compliance Officer of Wyoming Bank & Trust, on 1 Feb 2018 to CBANC FI Professionals Community.