Dear colleagues, I'd like to develop procedures to correct defaults/delinquencies before they get to our maximum tolerance of 15%. I'm thinking some kind of corrective actions- beyond regular collections -should be scheduled if the default rate gets up to and beyond 11%.
My current ideas: * Perform analysis of defaulted customers to ID "red flags" that may not have been noticed during loan review. * Meet with loan review committee for decision on corrective action to be taken. * Schedule time (1-4 weeks) to freeze new loan activity (no new loans, no interviews) to concentrate on corrective action and collections. What do you do that has proven to be successful? Please add to or comment on my brainstormed bullets, above. Thanks, Dave Washburn Consuelo Foundation Honolulu
