TOPIC: Loans

Loan Material Change Form

VP at a bank ($129MUSA)
Would anyone have a sample of a Material Change Form that is filled out by the loan officer to request a modification?  And if written procedures would accompany that sample, I would not be upset..  :)  
Thanks for your time. 

    Small Loans and Ability to Repay

    CEO at a bank ($38MUSA)
    I'm in a micro bank in a town without payday lenders or finance companies and have always considered it the bank's responsibility to fund those small loans.  Sometimes as low as $50.00.  I just charge the maximum allowed and it may only be $2.00 as the APY can only be 21%.  

    If anyone has a policy that covers these type loans I'd like to see and the justification for Examiners.  Do you have ATR requirements?  I deduct 28% of income for Housing (even though  roommate pays 100%) and 14% for monthly payment expense. Total is 42% and rest is for living expense. So basically if their existing and new payment are more than 14% of income I would need to bend policy if loan is made. 

    My bend is justified by my thoughts that about anyone will repay a $2,000 unsecured loan. 

    Any of your thoughts or policy considerations will be appreciated.

      Webinar | Synthetic Identity Fraud: Unreal Identities Result in Real Fraud Losses - Join us October 2

      October 02 at 12:30 PM - 01:30 PM EST
      Synthetic Identity Fraud: Unreal Identities Result in Real Fraud Losses

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        True Costs of Processing a Loan File

        We all know that loan files can be costly. Whether it be the cost of working with a vendor or to get a report processed, we know those monetary costs can stack up. But what is the true cost of each loan file? How many hours do you spend inputting customer information or going back and forth with an appraiser? Most importantly, why is spending all that time justified, or are you seeking ways to cut down the true costs of a loan file? 

          Debt Protection - Tax Implications

          VP at a credit_union ($936MUSA)
          Does anyone here report 1099s on benefits received for debt protection? Can you provide the reason and support for reporting or not reporting.  Our vendor is stating that they have no clients that are sending 1099s on benefits received.  However the contract with our vendor puts the burden of reviewing this point on us.  I appreciate any thoughts or feedback you can provide on this subject.    

            Whitepaper | Hemp, The Farm Bill, and Their Impact on Ag Lending

            For growth-minded institutions, the recent legislation for cultivating hemp in the US may shed light on a new opportunity regarding the banking and servicing of hemp-related businesses. But the changes tied to the Farm Bill also bring increasing risks for banks and credit unions who take on these clients. In this paper, Abrigo experts outline some of the critical questions that institutions can use to begin evaluating the potential value – and risk – to the institution in taking on cannabis related businesses (CRBs) or marijuana related businesses (MRBs).

            Download to learn:
            • How to evaluate the opportunity
            • The impact of the Farm Bill
            • The differences between cannabis, marijuana, hemp, and cannabinoids (CBDs)
            • Potential risks of taking on these banking relationships
            Click here to download the whitepaper. 

              Installment Loan Policy -

              SVP at a bank ($654MUSA)
              Does anyone have an installment loan policy they would share?   I'm really looking for more of the "filler" of the policy than rates and terms.  Regulatory compliance policy, EFT, e-sign, credit reporting, payment process, collections, customer service, scoring & underwriting, Cybersecurity and compliance training, records retention....  Any excerpts or help would be very appreciated.  TIA. 

                Free Webinar - Stress Testing and CECL: Connecting the Dots

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                Financial institutions have been conducting stress tests long before the regulatory mandates were put in place after the 2007-2008 financial crisis.  Larger financial institutions have principally adopted the top-down approach (aka CCAR) which focuses on macro-economic changes and the resulting “stress” on large portfolios or individual assets.  Smaller financial institutions ($25B or less) primarily perform the bottom-up “stress” that focuses on the loan transaction risk stemming from changes in micro-economic factors i.e. increasing interest rates or cash flows.  As the goal of both approaches is a test on the capital adequacy of the respective financial institution, with CECL having the same goals, CEIS and Abrigo will examine the “bottom-up” stress test approach and the pros and cons for your CECL program

                Join this webinar as we discuss:
                1. Data challenges
                2. The benefits of bottom-up stress testing
                3. Using stress testing data and outcomes in the CECL model development
                Wednesday, September 18, 2019
                2:00 PM ET / 1:00 PM CT

                Partnered with CEIS Review Inc.

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                  Now available to watch on demand! [FREE] New CBANC Member Benefit: Lendwell

                  Check out our new webinar! We discuss how Lendwell is currently helping hundreds of financial institutions and their lending teams save 2 hours per loan file by having a one-stop-shop for all settlement products and how we are able to deliver 20% immediate savings to your settlement costs. We also answer questions in real time and highlight some of our current institutions who use this platform today.

                  https://www.cbancnetwork.com/education/webinars/view/66b66f6e-7789-453a-814f-3277ac986a6c

                  Please feel free to message me directly to schedule a demo. 

                    Free Webinar: CU Best Practices for Credit Analysts

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                    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.

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                    Join to Learn:  
                    • Best practices for loan and financial statement analysis 
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                    • 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.

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