There have always been specific fair lending risk factors for commercial loans, but not a great deal of attention from regulators who are more focused on the safety and soundness aspect of commercial loan portfolios. What will your examiners begin to review with the advent of the 1071 rules? When an examiner compares a file for a denied women or minority-owned small business applicant to an "established GOOD commercial customer" will your bank be able to justify the decision? Will the collection activities also receive more scrutiny?
These five areas will be a reason to "fine-tune" fair lending training in the commercial loan area: Vague or subjective underwriting, Risk-based pricing that's not based on objective criteria, Lack of File Documentation and exception tracking, Marketing and advertising practices, Patterns of lending and exclusions identified in the most recent CRA exam. SPECIAL NOTE - the proposed CRA rules specifically reference the use of 1071 data analysis.
FAILURE TO ACHIEVE A SATISFACTORY CRA RATING WILL STOP YOUR BANK'S PLANS FOR EXPANSION.
Who Should Attend
This program is designed for Chief Credit Officers, commercial lenders, commercial loan assistants, Compliance Officers, auditors, Fair Lending officers, Collections staff, Loan Administration staff, CRA officers