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Our
process is similar to Canton and Clearwater. We also had to train some of our
LRC members, and made sure there was at least one banker present to answer
credit report questions. Another benefit to including the full credit
report copy is that if the loan coordinator doesn't have deep experience reading
the report, s/he has the committee members and their combined experience to fall
back on.
I'm
very interested in Robin's effort to create "profiles". Robin, could you e-mail
us an example?
Aloha,
Dave Washburn
Family
Loan Program Manager
Consuelo Foundation
Honolulu, HI
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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