This presentation will provide guidance for today’s regulatory standards for underwriting both consumer and business loans. Financial regulators continue to emphasize two points – verification and depth of documented support material. Insight will be provided from the presenter’s experience defending credit procedures brought in legal filings by financial regulators against two failed financial institutions.
- Regulatory emphasis – the essence of the credit
- Significant points in Reg B (Equal Credit Opportunity Act) and the Fair Credit Reporting Act
- The credit risk evaluation process
- The 5 Cs of credit
- Proposed ATR/QM rule
- Risk in a business credit exposure
- Interviewing – making the most of the loan application interview
- Loan request information
- Documents to obtain or request during the application process
- Verify application information: asset ownership, deposit balances, appraisals, and evaluations
- Underwriting consumer loans
- Income and debt issues
- Debt-to-income ratios
- Payment shock
- Using a risk-grading matrix
- Underwriting business loans
- Cash flow analysis – which income and debt numbers to use
- Debt service coverage ratios
- Structuring the loan
- Documenting the credit decision – approval document
- TAKE-AWAY TOOLKIT
- Electronic training logo
- Quiz you can administer to measure staff learning and a separate answer key
Attendance verification for CE credits provided upon request.
Who Should Attend?
This presentation is for beginning and intermediate-skill level personnel including credit analysts, loan underwriters, commercial loan officers, loan review personnel, and directors on the Loan Committee.
About the Presenter - S. Wayne Linder, Young & Associates, Inc.
With over 30 years as a banking veteran, Wayne Linder was formerly the CEO of a community bank. At Young & Associates, Inc., Wayne works as a senior lending and management consultant. He performs loan reviews; assists financial institutions under regulatory enforcement agreements; performs management and board of director assessments; and develops and implements written policies throughout all areas of the financial institution. Wayne is a popular seminar speaker with both national and international experience. In addition to his many published articles, he is the author of Loan Review Deskbook.
|Over $75 million
|$7 - 75 million
|Under $7 million
Cancellation Policy: Sorry, no cancellations are allowed after connecting instructions and handout materials are distributed to registrants. Substitutions are welcomed and encouraged.
Please note: The live webinar option allows you to have one telephone connection for the audio portion and one Internet connection (from a single computer terminal) to view online visuals as the presentation is delivered. You may have as many people as you like listen from your office speaker phone.