Consumer Lending School

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 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

DAY 2 SESSION 3: CREDIT INVESTIGATION, EVALUATION AND DECISION-MAKING PROCESS<
  • Review and Understanding of the Credit Report and 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
CASE STUDY: Analyzing the Personal Financial Statement and Calculating Adjusted Net Worth

CASE STUDY: Consumer Loan Request Case Study

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

DAY 3 SESSION 4: CREDIT INVESTIGATION, EVALUATION AND DECISION-MAKING PROCESS (CONTINUED)
  • 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
  • Credit and Ratio Analysis
  • Basic Cash Flow Analysis
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
CASE STUDY: Documenting a Consumer Loan to Protect the Bank's Security Interest

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

Online registrations are followed up with an email confirmation. Once an online registration is started you must click proceed to check-out and then click submit to finalize the registration. Registrants can view events they are registered using the MyKBA link on https://www.kybanks.com.

If you are not a KBA member, please contact Paula Cross at pcross@kybanks.com or 502-736-1276 for the possibility of attending at a non-member rate.

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

Should you need overnight accommodations we suggest: Holiday Inn Express, 1520 Alliant Avenue, Louisville (502) 240-0035; be sure to mention you are attending a KBA program to receive our rate. The special rate for KBA will expire 4/28/25.
When
5/5/2025 9:00 AM - 5/8/2025 4:00 PM
Eastern Daylight Time
Where
Unified Technologies Training Room 11500 Blankenbaker Access Drive Louisville, KY
Registration
Sign in or create an account to register
Registration ends 5/5/2025 8:00 AM EDT

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About the Speaker(s)



Mr. Jeffery Johnson
Bankers Insight Group, LLC

Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender for SouthTrust Bank (a large Southeastern Regional Bank) and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta (Community Bank).Most of his career has been spent in Credit Administration, Lending (Commercial, Consumer and Real Estate), Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individuals, Middle Market Companies, Small Businesses, Real Estate and Non-Profit Organizations and managed several loan officers with portfolio management responsibilities.Mr. Johnson is now a training professional in the banking industry by leading various seminars covering important topics relating to issues in banking. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual banks nationwide. He co-authored a training course entitled “Lending to Service and Other Professional Organizations” for RMA in 2001.


Education Alliance Cancellation Policy
 Substitutions are always welcome and encouraged. All cancellations and substitutions request must be submitted in writing prior to the event.

KBA Seminar Registrations can cancel 30 days prior to the event date and 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.

KBA Schools Applicants can withdraw from a KBA School 10 days prior to the 1st day of the school for a refund minus a $150 cancellation fee. There is no refund if an applicant withdraws after the deadline or if applicant fails to attend the school, with the exception of extenuating circumstances. Due to commitments and expenses we cannot reverse, such as: handouts, food, beverages, room rentals, speaker fees, etc.; even extenuating circumstances will require partial refunds because of these expenses.