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In
Canton we operate the same as Clearwater stated. We did find it necessary
to provide training to our committees on how to read a report. We provide
each of our committee members with a book provided to us through the United
Credit Bureau of Ohio. Providing our Committee with this report sometimes
bogs down the process. At times I am spinning my wheels with the committee
members, because they get nervous, due to the risks involved. That is the
nature of this program through, we do take a risk with each client we provide
the loan to. The hope is to make the risk as low as we can, through
reviewing character, capacity and collateral. The bad credit is why they
are here.
In
Canton we have reviewed cases to determine Low risk verses High risk factors
involved. We have reviewed defaults and successes to determine a "profile"
based solely on Character, Capacity and Collateral. We have sited some
trends and will be creating a checklist that will assist the committee members
in rating applications presented. We are in the process of creating this
as we speak. Socially we want to assist but we must remember we are a
business that needs to be successful, which means we must take risk
management measures to ensure we are being effective, within the
realms of the programs criteria. We will provide orientation for our
committee members in this area and will make this "5 Category" ranking system
part of our normal review for each application presented.
Thanks
Robin
S ~~~ Canton, Ohio ~~~
Kevin,
In
Clearwater we provide a copy of the Personal Statement, Debt to Income
Worksheet, credit bureau and a summary page to the Loan Review Committee
members. Since the LRC never meet the applicant, the documents we
provide give them the "facts". A pattern of irresponsible use of credit
is part of the mix. We delete names and any other identifying info before the
LRC sees the package.
Since LRC members are helpers to keep the program afloat, I feel they
should see as much of the information as is needed to make a
decision.
During my face-to-face interview with the applicant, what looks on
paper to one thing may in fact be another. I like to think that the
"facts" on are on the paper but the "heart" is what is on the summary
page. Otherwise, we would be bankers!
[Jane
White] ----Original Message-----
From:
Kevin P. Stewart [mailto:[EMAIL PROTECTED]]
Sent: Monday,
January 13, 2003 10:05 AM
To: [EMAIL PROTECTED]
Subject:
[WTW] Use of Credit Bureau Reports in Loan Committee
Meetings
A new loan coordinator inquired about the use
of credit bureau reports in loan committee meetings.
The reason that I am presenting this topic
for discussion is that I think insights from loan coordinators would be
helpful.
So, here are some questions for
discussion. Why do you think loan committee members need (or don't need) to
review credit bureau reports. Are there benefits of loan committee
members reviewing (having actual copies) credit bureau reports? If so, what
are those benefits? Do credit bureau reports influence the decisions of the
loan committee members? If so, how? Do you distribute copies of applicants'
reports to committee members? If so, why? Do you present a summary (instead
of actual reports) to loan committee members? If so, why?
Thanks,
Kevin
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