Consumer Lending School - Louisville

Program is 9 a.m. - 4 p.m. local time and includes breakfast and lunch each day. Registration (on the first day only) begins at 8:30 a.m.

Should you need overnight accommodations we suggest:

Holiday Inn Express & Suites, 800 West Market Street, Louisville (502) 583-2552; be sure to mention you are attending a KBA program to receive our rate.

The Galt House, 140 North 4th Street, Louisville (502) 589-5200

Homewood Suites, 635 West Market Street, Louisville (502) 589-2000

Courtyard by Marriott, 100 South 2nd Street, Louisville (502) 562-0200

We do NOT have a room block at any of these hotels. All are within walking distance of the KBA office.

Proper analysis of consumer loan requests is more important today than any time in the history of banking because of the past economic environment worldwide which has left many consumers in a weaker financial condition than in the past. For this reason and the need for banks to continue growing the consumer loan portfolio safely, it is important for bankers to adjust their lending practices to insure the next consumer applicant is not becoming overextended and unable to meet their obligations.

This program introduces the consumer lending process from the initial application to closing and documentation. It will follow the "TION" Method of Consumer Lending including the following topics:
  • Regulation
  • Solicitation (Business Development)
  • Application
  • Investigation
  • Evaluation
  • Decision
  • Documentation
  • Administration


These steps will explore methodologies to thoroughly accomplish successful consumer underwriting and will utilize lectures and case studies to reinforce the concepts presented.

After completing day one the participants will have a better understanding of underwriting consumer loans from the application to the closing and will be able to place this knowledge into practice immediately upon return to their respective banks. Specifically, the participant will be able to:
  • Understand individual strengths and weaknesses during the business development process plus proven tips to enhance success on the sales call.
  • Analyze Loan Applications and Personal Financial Statements
  • Ask relevant questions during the interview process
  • Investigate the validity of the information on the application and credit report
  • Evaluate the consumer utilizing proven credit principles and proper debt to income calculations
  • Review the decision-making process utilizing an effective consumer loan policy
  • Recognize the important Regulations covering consumer lending
  • Analyze the tax returns to determine true Cash Flow


The order of sessions below is subject to change.

DAY 1 SESSION 1: INTRODUCTION, CONSUMER LENDING ENVIRONMENT, CONSUMER LENDING REGULATIONS & THE CONSUMER CREDIT POLICY

  • Regulation B (Equal Credit Opportunity Act)
  • Regulation C (Home Mortgage Disclosure Act)
  • Regulation X (RESPA)
  • Regulation Z (Truth-In-Lending Act)
  • Understanding the Contents of the Consumer Lending Policy
  • Purpose of the Consumer Loan Policy
  • Identifying Desirable and Undesirable Types of Consumer Loans
  • How to Underwrite Consumer Loans


SESSION 2: THE APPLICATION PROCESS

  • Purpose of the Consumer Loan Application
  • Best Practices During the Application Phase
  • Analyzing the Application for Consistency
  • Effective Questions During the Loan Interview
  • Regulatory Requirements Governing the Application Process


CASE STUDY: Review of Loan Applications to Detect Inconsistencies, Errors and Common Flaws

CASE STUDY: Review Loan Officers' Consumer Credit Memoranda to Detect Common Flaws and Identifiable Misapplication of Judgment

DAY 2 SESSION 3: CREDIT INVESTIGATION, EVALUATION AND DECISION-MAKING PROCESS

  • Understanding Credit Reports and Other Credit History Information


CASE STUDY: How to Read a Credit Report

  • Understanding the Credit Score and How It Should Be Used in Making Credit Decisions
  • Verification of Employment, Income, Assets and Liabilities
  • Review the Six "C's" of Credit
  • Analyzing Personal Financial Statements
  • Calculating the Debt to Income Ratios
  • Evaluating Non-Financial Factors that may Impact the Consumer
  • Underwriting Unsecured & Secured Loans " Characteristics of an Unsecured Loan: Things to Look for Before an Unsecured Loan is Approved " How to Structure Unsecured Consumer Loans


CASE STUDY: Calculating the Consumer's Adjusted Net Worth (Scrutinizing the Personal Financial Statement)

DAY 3 SESSION 4: CREDIT INVESTIGATION, EVALUATION AND DECISION-MAKING PROCESS (CONTINUED) (ANALYZING THE SELF-EMPLOYED BORROWER)

  • Understanding How Self-Employed Borrowers are Different from Salaried Borrowers
  • How to Transpose Income into Cash Flow Income by Making Required Adjustments to Income


CASE STUDY: Analyzing the Self-Employed Borrower to Determine True Cash Flow

DAY 4 SESSION 5: UNDERWRITING THE SMALL BUSINESS BORROWER

  • Determining the Creditworthiness of Small Businesses Often Owned by the Consumer Borrower
  • Character Analysis
  • Credit and Ratio Analysis
  • Basic Cash Flow Analysis
  • Documenting Actions During and After the Consumer Loan Decision Has Been Made
  • Review Loan Documents to:
  • Identify the Borrower
  • Identify, Value and Protect the Collateral
  • Evidence the Debt
  • Attach the Collateral
  • Perfect the Collateral


CASE STUDY: Closing and Documenting a Consumer Loan to Protect the Bank's Security Interest

SESSION 6: CONSUMER LOAN DOCUMENTATION

  • Documenting Actions During and After the Consumer Loan Decision Has Been Made
  • Review Loan Documents to:
  • Identify the Borrower
  • Identify, Value and Protect the Collateral
  • Evidence the Debt
  • Attach the Collateral
  • Perfect the Collateral


SESSION 7: LENDING TO THE SPECIAL CONSUMER

  • Unsecured Consumer Lending
  • Lending to Consumers and Small Business on Limited Financial Information
  • Lending to High Net Worth Individuals


KEY BENEFITS FROM ATTENDING

  • Enhanced Understanding of the Consumer Borrower
  • Established and Proven Consumer Lending Process to Achieve Consistency in Consumer Lending
  • Understand the Importance of the Consumer Lending Policy and How It Provides Guidance for the Consumer Lender
  • Develop Loan Interviewing Techniques to Determine Creditworthiness
  • Know How to Verify Income, Assets and Liabilities
  • Understand the Decision-Making Process Utilizing the Judgmental and Credit Scoring System
  • Understand the Unique Traits of the Self-Employed Borrower
  • Know How to Underwrite Unsecured Consumer Loans to Reduce Risk
  • Early Recognition of the Un-Creditworthy Consumer Borrower and a Potential Problem Consumer Loan


Cancellation Policy

Cancellations received more than 30 days prior to the event will receive a full refund. Cancellations received between 29 days and 10 days prior to the event will be charged a $50 processing fee. There will be no refund for cancellations received less than 10 days prior to the event. Substitutions are always welcome and encouraged. All cancellations and substitutions must be submitted in written format prior to the event.
When
5/13/2019 - 5/16/2019
Where
Kentucky Bankers Association
600 West Main Street
4th Floor
Louisville, KY

About the Speaker(s)

 List View Contact
Mr. Jeffery Johnson
Jeffery Johnson
Bankers Insight Group, LLC

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Monday, 13 May 2019

 
Time
5/13/2019 9:00 AM - 5/16/2019 4:00 PM
5/13/2019 9:00 AM
Second registrant from the same bank
Time
5/13/2019 9:00 AM - 5/16/2019 4:00 PM
5/13/2019 9:00 AM