This program consists of ten online self-paced courses and two webinars. The webinars will cover real lending scenarios, and participants will enter virtual breakout rooms for interactive small-group discussions. Live attendance is a must to get the most out of this engaging training opportunity. Breakout rooms will not be recorded. Space is limited to 30 participants for a high-value learning experience, so register today! Interested in a private training for your Financial Institution? Contact us to set up a private virtual training at the same low cost!
Students will independently work through the first five courses and assessments prior to the first webinar, Consumer Lending Program – Part 1. Students will then work through the final five courses and assessments prior to the second webinar, Consumer Lending Program – Part 2.
Consumer Lending Program – Part 1
June 3, 2024 | 1:30 pm – 3:30 pm CDT
Introduction to Consumer Credit
The primary purpose of this course is to give participants an overview of consumer lending and the competitive marketplace. They will learn the basic characteristics of the consumer lending products offered by financial institutions, why financial institution offer consumer lending products and how they make profits from consumer loans.
Government Regulations and the Lending Process
This course highlights the consumer regulations that affect every step of the consumer lending process from initial inquires, to making the loan decision and communicating the decision to the applicant. You will learn the reason behind the regulations and how regulations protect the borrower and the applicant.
The Five Stage Lending Process
This course introduces participants to the Five-Stage Lending Process which provides a basic structure for processing, analyzing, documenting and following up on a consumer lending request. It gives participants a proper framework and helps ensure they have not forgotten any steps.
Taking the Application
This course gives participants the tools to understand the information that is required on a consumer credit application and to properly respond to informal inquiries about consumer loans. It is essential to understand all the information required on the application in order to hold conversations with applicants in a manner that makes them feel comfortable. Key elements of the application include the reason for the request and whether the request is within policy. Participants also learn which types of identification are acceptable.
Investigating the Applicant – Part 1: Analyzing Credit Bureau Reports
The purpose of the course is to investigate the applicant’s stability of employment and residence and willingness to repay the loan. Key elements in this process are to determine sources of income that are acceptable to repay a loan especially from both salaried and self- employed applicants. The willingness to repay the loan can be ascertained by analyzing a credit bureau report and their FICO credit score.
Consumer Lending Program – Part 2
June 17, 2024 | 1:30 pm – 3:30 pm CDT
Investigating the Applicant – Part 2: Analyzing Personal Financial Statements and Tax Returns
This course focuses on the financial strength of the borrower. From the tax returns and personal financial statement, you will learn to calculate the applicant’s debt to income ratio and determine if it is sufficient to repay a loan. Understanding appraisals is also a key element when evaluating mortgage and home equity lending requests to determine if there is a sufficient secondary source or repayment.
Making the Loan Decision
The primary focus of this course is to use all the information gathered from the application, credit bureau report, personal financial statement and tax returns and actually make a loan decision. There are three possible decisions, yes, no or potentially making a counteroffer. It is essential to create a loan structure that matches the loan structure to the borrower’s needs. Secondary sources of repayment include collateral and understanding the procedures for accepting collateral and making sure the correct insurance is in place to reduce risk.
Processing the Loan
This course focuses on gathering all the necessary documentation to perfect our security interest in the loan. It is essential to understand all the security agreements and the common documents in a consumer loan file.
Following up on the Loan
As a lender, it is essential to protect your institution interest especially in the event of non-payment. You must learn to deal with different types of delinquents and to understand the legal options available, including Chapter 7 and 13 bankruptcies.
Preventing Fraud
In this course you learn the ways applicants can commit fraud and learn to take the necessary steps to prevent fraud from happening in the first place.
Who Should Attend
Consumer lending & underwriting staff, branch managers, assistant branch managers, operations staff, and personal/universal bankers would all benefit from this training.