Elements of a Successful MBL Program. Creating And Sustaining Your MBL Competitive Advantage
|
|
- Brooke Carr
- 8 years ago
- Views:
Transcription
1 Creating And Sustaining Your MBL Competitive Advantage Jim Devine, CEO, Hipereon, Inc. Let s Define Some of The Strategic Concerns For Member Business Lending Where are we Now? There are 2,000+ Credit Unions now actively engaged in providing MBS/MBL Services 1
2 Let s Define Some of The Strategic Concerns For Member Business Lending There is now over $34 Billion in MBL on the Books of CUs MBL is one of the Most Rapidly Growing Segments of CU Loan Portfolios. Over 75% are linked to Real Estate transactions Let s Define Some of The Strategic Concerns For Member Business Lending What is the Driving Reason behind the Desire to offer MBS/MBL Services? Does the Board of Directors clearly understand the range of Risks involved in MBS/MBL Activities? 2
3 Let s Define Some of The Strategic Concerns For Member Business Lending Average Loan Size for MBLs is Much Larger than Consumer Loans - +$200,000 Average Loan Interest Rates are typically Higher and Cross Selling Opportunities are also Greater Let s Define Some of The Strategic Concerns For Member Business Lending Average Deposit Sizes for MBs is typically Much Larger than Consumer Deposits Fee Income Potential is also typically Much Higher 3
4 Let s Define Some of The Strategic Concerns For Member Business Lending Has the CU established Specific Targets for their MBS/MBL Activities? Does the CU know How Many of it s Existing Members are Small Business Owners? Elememts of a Successful MBL Let s Define Some of The Strategic Concerns For Member Business Lending Is the Primary Objective to Service Small Businesses Owned By Existing Members? Is there desire to also Utilize MBS Services to Expand The Current Membership Base of the CU? 4
5 Let s Define Some of The Strategic Concerns For Member Business Lending Is the Primary Objective to Generate Working Assets while serving Existing Members? Is the Primary Objective to simply Increase CU Revenue Potential? Let s Define Some of The Strategic Concerns For Member Business Lending What Is The CU Value Proposition? Nicer? Faster? Cheaper? Better? 5
6 Let s Define Some of The Strategic Concerns For Member Business Lending What Value Proposition constitutes a Sustainable Competitive Advantage? Let s Define Some of The Strategic Concerns For Member Business Lending Your capacity for MBL will be driven by the following factors: Regulatory limitations Your capital structure Your ability to organize an integrated MBS/MBL game plan 6
7 Let s Define Some of The Strategic Concerns For Member Business Lending What is needed to Successfully Deliver MBS/MBL services? Competitive Product Mix Compatible Core Processing Systems Business Credit Underwriting Capabilities Let s Define Some of The Strategic Concerns For Member Business Lending What is needed to Successfully Deliver MBS/MBL services? Viable Business Credit Administration Ability to Manage Problem Loans Ability to Attract and Retain quality MBS/MBL staff members 7
8 Let s Define Some of The Strategic Concerns For Member Business Lending 723 limits total MBL loan volume to 12.25% of Total Assets CU Asset Size $100 Million $500 Million $1.0 Billion Maximum 12.25% $12.25 Million $61.25 Million $122.5 Million # of $210, Loans 292 Loans 584 Loans Net Interest 3.25% $398,125 $1,990,625 $3,981,250 Let s Define Some of The Strategic Concerns For Member Business Lending Other 723 limits -Total MBL loan volume CU Net Worth Size $10 Million $50 Million $100 Million Single Borrower 15.0% of Net Worth $1.5 Million $7.5 Million $15.0 Million Unsecured 10.0% of Net Worth $1.0 Million $5.0 Million $10.0 Million Unsecured Single $100,000 or 2.5% of Net Worth $250,000 $1.25 Million $2.5 Million Total Construction & Development 15.0% of Net Worth $1.5 Million $7.5 Million $15.0 Million 8
9 Let s Define Some of The Strategic Concerns For Member Business Lending Who developed the CU s Member Business Loan Policies and Procedures? Does Everyone on the CU staff Clearly Understand their MBS/MBL Policies and Procedures? Let s Define Some of The Strategic Concerns For Member Business Lending How will the CU address its Member Business Loan Underwriting Needs? How will the CU Review and Approve/Decline MBL requests? 9
10 Let s Define Some of The Strategic Concerns For Member Business Lending Managing MBL Underwriting and Loan Review MBL Loan Review process Who sits on the Loan Review Committee? Do they have Business Lending Experience? Let s Define Some of The Strategic Concerns For Member Business Lending Managing MBL Credit Administration Ability to Administratively Monitor MBLs on an ongoing basis Development of a viable MBL Risk Rating System 10
11 Let s Define Some of The Strategic Concerns For Member Business Lending Funding the MBS/MBL. What will the Funding Commitment be to Develop the MBS/MBL Infrastructure? What is the Timeline the CU will consider reasonable for Incubating the MBS/MBL? Let s Define Some of The Strategic Concerns For Member Business Lending MBL origination. Does it Matter If the Loan is to a Local Business Entity? Will the CU consider Loan Participation Opportunities to generate New Working Assets? 11
12 Let s Define Some of The Strategic Concerns For Member Business Lending What Comes First? The development of Critical Mass in the Loan Portfolio or the development of an Experienced MBL Staff? How does this Chicken vs The Egg situation play out properly? Let s Define Some of The Strategic Concerns For Member Business Lending Many CUs have utilized Loan Participations to create Critical Mass in their MB Loan Portfolios Is the objective to create a Funding Source to justify the Development of The MBL Staff? 12
13 Let s Define Some of The Strategic Concerns For Member Business Lending How do Loan Participations serve the Existing Membership Base? If a CU is the Lead Lender in a MBL Participation, does it Know How To Manage the process? What are the related Recourse Liability issues? Let s Define Some of The Strategic Concerns For Member Business Lending CUs Are Typically Choosing One Of Two MBL Delivery Profiles: In-House Underwriting Outsourced Underwriting 13
14 The NCUA established Minimum Staff Experience Requirements for CUs planning to offer Member Business Lending services The Minimum Requirements are Two Years Of Working Experience Underwriting Business Loans Is Two Years of experience Enough? Let s Define Some of The Strategic Concerns For Member Business Lending Internal underwriting requires Adequately Trained Staff Members They must have an Integrated Underwriting Process that can be Efficiently and Consistently executed 14
15 Let s Discuss Some of the Strategic Concerns For Member Business Lending Consistent underwriting processes clearly define Primary and Secondary Sources of Repayment Do All MBL Staff Members utilize the Same Underwriting Process? Let s Define Some of The Strategic Concerns For Member Business Lending Who Designed the CU s Underwriting Process? Who is Training And Supervising the MBL underwriters? 15
16 Where Do Credit Unions go to find Qualified Staff Members that meet the NCUA Minimum Staff Experience Requirements Hiring Bank Staff Members has become the Default Strategy for meeting the minimum experience requirements Is Two Years of bank experience Enough? When Did They Start Their Banking Career? Prior To 1985 Commercial Lending Officers Had Very Extensive Internal Training and A Formal Career Path They Paid Their Dues The terms Banker and Lender were Almost Synonymous 16
17 When Did They Start Their Banking Career? Prior To 1985 Most All Of The Bank Lenders That Went Through Formal Training s Are Now 50+ Years Old There are Not Many highly trained and experienced Commercial Lenders in the Year age bracket Succession? When Did They Start Their Banking Career? Since 1985 Very Little Formal Commercial Lender Training s Have Been Offered Most Underwriting is done in a Centralized and Automated Loan Center Environment Very little Business Expertise exists at the Point Of Sale for most Banks 17
18 So, When did The New-Hire Candidates from the Banks Start their banking careers? So, Who are the CUs Hiring? Do the Experienced Bankers they are hiring Know Anything about Underwriting Business Loans? Where do Credit Unions find Qualified Staff Members to establish their Member Business Services? Are Existing Staff Members qualified? If not, Who is responsible for Hiring? Do they Really Know what to look for? 18
19 Is the CU Outsourcing its MBL underwriting? What are the Risks and Issues associated with Outsourcing these services? How do you pick a Qualified Provider for Outsourced MBL Underwriting? Who establishes the Selection Criteria? 19
20 How do you pick a Qualified Provider for Outsourced MBL Underwriting when you have Little If Any Business Lending experience? Can you Control the Outsourced Underwriter Turnaround Time for an underwriting package? What Quality Control Measures does the CU employ to Monitor Outsourced business loan Underwriting Standards? 20
21 Does the CU also have a Direct Ownership Interest in the CUSO? To make the CUSO viable you need Adequate MBL underwriting Deal Flow Are there any Conflicts Of Interest? Is there a Formal Loan Committee in place that Reviews And Approves all of the MBL Underwriting Packages? Who serves on the Loan Review Committee? Why? What Business Lending Experience do they bring to the process? 21
22 Have all of the Loan Committee Members received Adequate Training to be capable of Reviewing And Approving or Declining MBL underwriting packages? And Now The FUN Really Begins The Real Risks To The CU Come AFTER The Member Business Loans Are Booked 22
23 Who is Monitoring the Business Loans once they have been Approved And Booked? Is Credit Administration separated from Loan Production activities? Is the CU utilizing a Loan Grading System for Monitoring Risk? In the event a Problem Loan arises, Who is Responsible for Managing the Workout Process? 23
24 The Loan Grading System should score the following factors: Ability to Pay Business/Personal Financial Condition Management Experience and Ability The Loan Grading System should score the following factors: Existence of Collateral and Guarantees Business Loan Structure Industry and general Economic Conditions 24
25 To mitigate potential lender liability CU lenders should make sure to: Put everything in Writing Always complete a formal Loan Application Confirm all business loan Commitments in Writing To mitigate potential lender liability CU lenders should make sure to: Complete all Negotiations before Closing Be sure to Fully Disclose all Conditions before Closing The Loan Make all related Loan Documentation Available For Review 3-5 days before Closing The Loan 25
26 To mitigate potential lender liability CU lenders should make sure to: Confirm The Borrower has All Of The Loan Documents before Closing Recommend the borrower Retain Professionals to help them understand the loan process Make sure to take Adequate Time to Close The Loan properly To mitigate potential lender liability CU lenders should make sure to: Control Disbursement of The Loan Proceeds Make sure that any subsequent Loan Agreement Modifications must be In Writing Make sure to Listen Carefully to all Conversations With The Borrower 26
27 To mitigate potential lender liability CU lenders should make sure to: Never Ignore any Loan Defaults Don t interfere directly with The Borrower s Business Management practices Stay off of The Borrower s Board Of Directors/Advisors To mitigate potential lender liability CU lenders should make sure to: Utilize Legal Counsel whenever necessary Not make any Misrepresentations to The Borrower Above all, Tell The Truth 27
28 How does the CU monitor Business Loan Performance and Loan Structure compliance? Is this effort Also being Outsourced? In The Event Of A Problem Loan: How will the CU Manage the situation? How will Performance Measurement and Accountability be administratively handled? 28
29 Beware of the Loan To Value illusion for Collateral Does the CU know how to transition the Secondary Sources Of Repayment into the Primary Sources Of Repayment? So, what is the Collateral Conversion Plan? How will Loan Loss Provisions be addressed? Can the CU act quickly and decisively to assure they Maximize the results of their Recovery Efforts? 29
30 The Loan Administration process for CUs: The Objective is to Monitor Actual Business Performance Trends against Business Plan Objectives Corrective actions may involve the need to utilize Outside Consultants to Help Execute Plans to adjust and recover All Loan Files should be Periodically Reviewed to make sure everything is in proper order The Loan Administration Process For CUs: Make sure the Loan Files contain Adequate Legal Protection regarding the lender s Collateral Position Collateral documents may be Incomplete and they may also contain Improper Dates or the dates may have Lapsed If the Collateral has been Inaccurately Described, the lender May Not be Legally Able to perfect their interest 30
31 The Problem Loan Administration Process: Identify Debtor Defenses Attorneys representing the borrower will most likely Subpoena the Lender s Credit File Records They will look for any File Documentation that indicates The Lender was effectively In Control of the business The Loan Administration Process For CUs: Periodically review the Public Records to make sure the information furnished by the borrower can be Verified The Public Record should verify that the Lender s Interests are Perfected as Originally Intended The Public Record should also contain information on any Other Parties that may have also Filed A Claim 31
32 Specific records that should be checked include: Real Estate records should reflect the Legal Ownership of the properties The records will also reflect any Liens made against the property and in What Name the Liens Were Filed The records will show any Sales or Title Transfers as well as any Foreclosure Proceedings made on the property by Other Creditors Specific records that should be checked include: The UCC Filings will determine the Security Interests Filed by Other Parties against the Borrower s Personal Property There may be a need for the lender to file Continuation Statements to Extend the Lender s interest in the collateral 32
33 For MBS/MBL Credit Unions Need To: Make sure everyone in the organization is On The Same Page Determine if their MB Loan Officers have the Background And Experience to Also manage Problem Loans Reality Business Credit Risk Is A Choice Need THOROUGH CONSISTENT Credit Analysis Need TRAINED Staff Members More Than Ever 33
34 So, When Is A CU Ready For Business Lending? Must establish the use of a Standard Business Credit Memorandum Must use Consistent definition of Cash Flow Must use Consistent definition of Debt Service Coverage So, When Is A CU Ready For Business Lending? Must use a Consistent Business Loan File structure Must Monitor Business Loan Performance closely and Act Immediately if Out Of Compliance Must create Viable Career Paths for Business Lenders/Relationship Managers 34
35 So, When Is A CU Ready For Business Lending? Must develop a viable Loan Review Process Must have a Strategic Context for Member Business Asset/Liability Planning Must establish Quality Controls and Corrective Action Plans So, When Is A CU Ready For Business Lending? Must realize that Depth In A Relationship is the Key to both Profitability and Retention Bank Studies show at 4+ Product Relationships overall Profitability Soars At 4+ product relationships Account Retention Levels Exceed 95% 35
36 So, When Is A CU Ready For Business Lending? Must Address The Things Small Business Owners Want: Safety And Security Access To Capital Convenience/Multiple Channels Of Delivery Relationship Stability Advice And Help From A Business Expert So, When Is A CU Ready For Business Lending? CUs can t simply utilize an Outsourced Underwriter and Limit the rest of their Internal Commitment to Member Business Services CUs must be internally capable of Identifying, Soliciting, And Managing Member Business Relationships and their related Risks 36
37 So, When Is A CU Ready For Business Lending? CUs can t make Commercial Real Estate Loans synonymous with Member Business Loans CUs can t simply believe If You Have The Dirt You Can t Get Hurt! What makes a Credit Union different? What is their Sustainable Competitive Advantage? They must be As Good or BETTER than their competitors The Ultimate Differentiator The Quality, Stability And Skills of their MBS Staff 37
38 The Bottom Line is To Be Successful You Can t Be A PRETENDER In MBS/MBL The Bottom Line is To Be Successful You must focus on Business and Personal Financial Services needs and recognize business and personal financial services needs Evolve over Time 38
39 The Bottom Line is To Be Successful You must learn to Profile Needs and be both Proactive and Anticipatory You must learn to be a financial issues Problem Solver/ Solutions Provider Questions Regarding Business Lending Training Can Be Directed To Jim Devine, CEO / Bob Hogan, President/ or Greg Devine, Vice President Hipereon, Inc th Avenue NE Redmond, Washington (425) bob.hogan@hipereon.com jim.devine@hipereon.com greg.devine@hipereon.com 39
DCU BULLETIN Division of Credit Unions Washington State Department of Financial Institutions Phone: (360) 902-8701 FAX: (360) 704-6901
DCU BULLETIN Division of Credit Unions Washington State Department of Financial Institutions Phone: (360) 902-8701 FAX: (360) 704-6901 December 19, 2007 No. B-07-13 Structuring a Member Business Lending
More informationMember Business Loans (MBLs) represent a large market share that has largely been overlooked by credit unions. With the right strategy, credit unions
Member Business Loans (MBLs) represent a large market share that has largely been overlooked by credit unions. With the right strategy, credit unions can achieve successful results while helping small
More informationVincent H. Vieten, MBL PO Office of Examination and Insurance MBL. CUNA Lending Council Conference Fort Lauderdale, FL November 9, 2015
Vincent H. Vieten, MBL PO Office of Examination and Insurance MBL CUNA Lending Council Conference Fort Lauderdale, FL November 9, 2015 Credit unions continue to post strong loan growth in first half of
More informationSMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS
SMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS February 14, 2012 Terrence K. McHugh President Commercial Alliance 1 Business Lending in Credit Unions 1998 regulation limits business lending in
More informationDCU BULLETIN Division of Credit Unions Washington State Department of Financial Institutions Phone: (360) 902-8701 FAX: (360) 704-6901
DCU BULLETIN Division of Credit Unions Washington State Department of Financial Institutions Phone: (360) 902-8701 FAX: (360) 704-6901 July 9, 2004 07 No. B-04- Member Business Loans (MBL) The Division
More informationA Strategic Approach to Residential Mortgage Lending
A Strategic Approach to Residential Mortgage Lending Presented by Tracy Jean Ashfield Strategic Mortgage Solutions The Consulting and Training Division of Prime Alliance Solutions, Inc. October 19, 2009
More informationMEMBER BUSINESS LOAN GUIDANCE
MEMBER BUSINESS LOAN GUIDANCE The following guidance was drafted based on information in NCUA s Member Business Loans Regulation as detailed in Part 723, and other applicable laws and regulations. It is
More informationThe Cypress Group llc
L/ The Cypress Group llc Ms. Mary Rupp Secretary of the Board National Credit Union Administration 1775 Duke Street Alexandria, VA 22314-3428 RE: Proposed Rule on Loan Participations (CFR Parts 701 and
More informationBuilding a Footprint for Solid Member Business Lending Practices
Building a Footprint for Solid Member Business Lending Practices Introduction Almost every headline in the daily newspaper, on-line trade journal, or evening news coveys a message of doom and gloom. Is
More informationNORTH ISLAND CREDIT UNION
NORTH ISLAND CREDIT UNION Policy Section: Business Services Policy Name: Member Business Lending Policy No: 500-05-01 Board Review & Approval: July 21, 2014 Effective Date: July 22, 2014 POLICY STATEMENT
More informationHandout for Rule-making meeting on May 20, 2016
Compare sections of Chapter 208-460 to 12 CFR 723 (2016). Handout for Rule-making meeting on May 20, 2016 Section of Existing State Rule WAC 208-460-040 WAC 208-460-040 How do you implement a member business
More informationFederal Reserve Bank of Atlanta. Components of a Sound Credit Risk Management Program
Federal Reserve Bank of Atlanta Components of a Sound Credit Risk Management Program LOAN POLICY The loan policy is the foundation for maintaining sound asset quality because it outlines the organization
More informationBringing Business To You
Bringing Business To You Company and Product Overview Profile December 2015 CU Business Group is a CUSO focusing solely on business services. The following are highlights of our history and the services
More informationLaunching Member Business Lending: In House or CUSO: A Panel Discussion. November 9 th 2015
Launching Member Business Lending: In House or CUSO: A Panel Discussion November 9 th 2015 1 Moderator and Panelists: Moderator: Bob Stowell, SVP/COO, U.S. Federal CU, Burnsville, MN Panelists: Gwen Wong,
More informationRiverside County s Credit Union LOAN POLICY Revised 11/22//99 ==================================================================== INTRODUCTION
INTRODUCTION Riverside County s Credit Union (RCCU) considers the making of loans to members to be the most important element of our operation. In order to protect the credit union s asset quality, emphasis
More informationBringing Business To You
Bringing Business To You Company and Product Overview Profile January 2016 CU Business Group is a CUSO focusing solely on business services. The following are highlights of our history and the services
More informationHow To Write A Credit Union Loan Policy
Federally insured credit unions have generally conducted business lending safely, and NCUA s supervision of business lending has largely been successful. Over the past ten years, business loan portfolios
More informationSummary of Key Proposed Changes to NCUA s Member Business Loan Rule
Federally insured credit unions have generally conducted business lending safely, and NCUA s supervision of business lending has largely been successful. Over the past ten years, business loan portfolios
More informationRISK ASSESSMENT FOR SMALL BUSINESS. Terry S. Campbell, Community Development Officer Department of Development & Technology
RISK ASSESSMENT FOR SMALL BUSINESS Terry S. Campbell, Community Development Officer Department of Development & Technology Date: March 25, 2004 1 Counseling Tool Outline - Cover Page - Outline - Introduction
More informationCurrent Regulatory and Legal Climate for Credit Unions
Current Regulatory and Legal Climate for Credit Unions Moss Adams Supervisory Committee Training Workshop June 2, 2014 Harold B. Scoggins, III Farleigh Wada Witt 2 Conflicting Regulatory Imperatives 1.
More informationA. Eligibility Requirements for a Loan Modification & Troubled Debt Restructure (TDRs)
POLICY: L127 This policy governs any changes in original terms, on consumer and business loans including but not limited to real estate loans, that were agreed to at loan approval. Loan modifications and
More informationSSBCI PROGRAM PROFILE: COLLATERAL SUPPORT PROGRAM. May 17, 2011 State Small Business Credit Initiative (SSBCI) U.S. Department of the Treasury
SSBCI PROGRAM PROFILE: COLLATERAL SUPPORT PROGRAM May 17, 2011 (SSBCI) U.S. Department of the Treasury What is a Collateral Support Program? A Collateral Support Program is designed to enable financing
More informationFREQUENTLY ASKED QUESTIONS BUSINESS CONTINUATION
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA BUSINESS STRATEGIES Key Person Life Insurance FREQUENTLY ASKED QUESTIONS BUSINESS CONTINUATION When should a business and its owners consider buying insurance
More informationCredit Reporting FOR A SMALL BUSINESS
Credit Reporting FOR A SMALL BUSINESS Welcome 1. Agenda 2. Ground Rules 3. Introductions Objectives Explain the concept of credit reporting and the impact of credit reports on the operation or growth of
More informationProposed Rule Summary Prepared by NASCUS Legislative & Regulatory Affairs Department June, 2015
Proposed Rule Summary Prepared by NASCUS Legislative & Regulatory Affairs Department June, 2015 NCUA 12 CFR Part 723 Member Business Lending NCUA has published proposed changes to its Member Business Lending
More informationCommercial Loan Pricing Variables for Consideration
Commercial Loan Pricing Variables for Consideration OFN Small Business Finance Forum June 18, 2012 HOPE Colorado Enterprise Fund Commercial Loan Pricing Variables for Consideration HOPE The Primary Driver
More informationThe Law of First Impressions A Practical Guide to Mortgage Applicants
The Law of First Impressions A Practical Guide to Mortgage Applicants Increased Importance of Borrower Financial Statements For Commercial Real Estate Financing Robert T. Gibney Real estate investors prepare
More informationArt or Science? Modeling and Challenges in the Post-Financial Crisis Economy
Art or Science? Modeling and Challenges in the Post-Financial Crisis Economy Emre Sahingur, Ph.D. Chief Risk Officer for Model Risk Fannie Mae May 2015 2011 Fannie Mae. Trademarks of Fannie Mae. 2015 Fannie
More informationOPTIONS IN FORECLOSURE
Section II: KEEPING YOUR HOME OPTIONS IN FORECLOSURE Deciding whether or not to keep your home is something that only you, the homeowner, can determine. The best housing counselors will ask what you d
More informationNorth Carolina Community Federal Credit Union Policy Number 1400 2401 East Ash Street Goldsboro, NC 27534 Revised and Approved 06/22/04 Page 1 of 12
Page 1 of 12 1400 BUSINESS LOAN POLICY I400.1 General. It is the policy of NORTH CAROLINA COMMUNITY FEDERAL CREDIT UNION (NCCFCU) to make loans that represent a desirable and profitable means of investing
More informationPremium Finance Programs
Marketing Guide Life Insurance Premium Finance Programs Information and Guidelines FOR BROKER-DEALER OR AGENT USE ONLY LBL8190 Providing the life insurance coverage your customers need. Help your customers
More informationHow To Restructure A Loan In Gorgonia
Troubled Commercial Real Estate Debt Restructure 2010 Real Estate Conference June 17, 2010 Robert W. Reardon Partner, Real Estate and Commercial Lending Practices 404.504.7774 Charles R. Beaudrot, Jr.
More informationMaking Small Business Finance Profitable
Making Small Business Finance Profitable Key Lessons Learned about Applying New Technologies to SME Finance Peer Stein, Banking Advisory Group December 5, 2002 Shifting the Productivity Frontier Productivity
More informationChallenges & Opportunities in a New Era
Challenges & Opportunities in a New Era May 1, 2010 Today s Discussion Credit union results in the Great Recession How does Alaska credit unions performance compare with national credit union averages?
More informationAssessing Credit Risk
Assessing Credit Risk Objectives Discuss the following: Inherent Risk Quality of Risk Management Residual or Composite Risk Risk Trend 2 Inherent Risk Define the risk Identify sources of risk Quantify
More informationHow to Cut Your Interest Rates
1 How to Cut Your Interest Rates 2 Table of Contents Contents Page Number Overview 3 Chapter 1: Unsecured Debt Consolidation Loans 4-6 Chapter 2: Mortgages 7 12 Chapter 3: Consumer Proposals 13 15 Chapter
More informationBusiness Loans & Services. Rudy Pereira, President/CEO Royal Credit Union
Business Loans & Services Rudy Pereira, President/CEO Royal Credit Union Business Lending at Royal Credit Union Making business loans for the past 35 years Started due to Member requests Some Members have
More informationIntroduction to Member Business Lending. Jamie Reznick, Senior Manager Aran Loftus, Manager
Introduction to Member Business Lending Jamie Reznick, Senior Manager Aran Loftus, Manager Presentation Objectives Defining member business lending Strategic considerations Policies and controls Reporting
More informationGovernment Guaranteed Business Lending
Government Guaranteed Business Lending Ideally suited to the mission of CU s to satisfy their members business loan needs Herb White, VP of Lending, Hudson Valley FCU Margaret Gilbert, Managing Director,
More informationThe Corporate Finance Shift to Asset- Based Loans PART I
The Corporate Finance Shift to Asset- Based Loans PART I Realistic Business Owners Look Beyond Bank Cash Flow Loans 1 Brian Ballo Corporate Finance Associates The Good News 1 Financing is currently available
More informationDeciding Which Bills to Pay First
Deciding Which Bills to Pay First When you do not have enough money to cover your family s basic living expenses and pay all your creditors, you face some difficult financial decisions. When family income
More informationHow to Successfully Apply for a Small
How to Successfully Apply for a Small Business Loan Olean Area Federal Credit Union 1 Applying at a Bank vs. a Credit Union Highly regulated industry Regulations differ from credit union to bank Loan/Relationship
More informationSupervisory Letter. Current Risks in Business Lending and Sound Risk Management Practices
Dollars in Billions Supervisory Letter Current Risks in Business Lending and Sound Risk Management Practices The September 2009 Financial Performance Report data reflects an increasing portion of loans
More information5 Little Known Facts About Bankruptcy In Utah Other Attorneys May Not Tell You About.
Lewis Adams & Associates Utah Bankruptcy Attorneys Personal Reliable Professional (801) 396-0856 www.utah-bankruptcy.org 5 Little Known Facts About Bankruptcy In Utah Other Attorneys May Not Tell You About.
More informationPart II: Understanding the Lender s Perspective Evaluation of the franchise Variables in decision making How to enhance the funding package
Financial Summit Part II: Understanding the Lender s Perspective Evaluation of the franchise Variables in decision making How to enhance the funding package Moderator: Brad Fishman, CFE, CEO, Fishman Public
More informationREDUCING THE RISKS OF DEFAULTING EQUIPMENT BUYERS. by H. Lee Schwartzberg, Jr., Esq. 2005
REDUCING THE RISKS OF DEFAULTING EQUIPMENT BUYERS The Risk by H. Lee Schwartzberg, Jr., Esq. 2005 The commercial realities of the marketplace frequently require manufacturers to offer payment terms to
More informationUnsecured Business Lines of Credit
Unsecured Business Lines of Credit Need quick and substantial cash flow to your company, no matter its size or needs. With our funding, you will be able to ensure continued sustainable operations or implement
More informationFirst Time Home Buyer Glossary
First Time Home Buyer Glossary For first time home buyers, knowing and understanding the following terms are very important when purchasing your first home. By understanding these terms, you will make
More informationUnsecured Business Lines Of credit. Real Estate Investors, Business Owners, Start Up Business
Unsecured Business Lines Of credit Real Estate Investors, Business Owners, Start Up Business What is this program? This program is an alternative funding method with these great features No Collateral
More informationFlorida Foreclosure/Real Estate Law. E-Book. A Simple Guide to Florida Foreclosure/Real Estate Law. by: Florida Law Advisers, P.A.
Florida Foreclosure/Real Estate Law E-Book A Simple Guide to Florida Foreclosure/Real Estate Law by: Florida Law Advisers, P.A. 1 Call: 800-990-7763 Web: www.floridalegaladvice.com TABLE OF CONTENTS INTRODUCTION...
More informationUser Guide for Small Business Lending Documents
User Guide for Small Business Lending Documents MBUG36 User Guide for Small Business Lending Documents MBUG36 Disclaimer This guide is distributed to provide general information about the subject matter
More informationSummary of Key Changes to NCUA s Member Business Loan Final Rule
Summary of Key Changes to NCUA s Member Business Loan Final Rule Federally insured credit unions generally have conducted business lending safely, and NCUA s supervision of business lending has largely
More informationSSBCI PROGRAM PROFILE: CAPITAL ACCESS PROGRAM. May 17, 2011 State Small Business Credit Initiative (SSBCI) U.S. Department of the Treasury
SSBCI PROGRAM PROFILE: CAPITAL ACCESS PROGRAM May 17, 2011 (SSBCI) U.S. Department of the Treasury What is a Capital Access Program (CAP)? A CAP is a loan portfolio insurance program that enables small
More informationAUDIT OF DEFICIENCIES IN OFA s PURCHASE REVIEW PROCESS FOR BACKLOGGED LOANS. Audit Report Number: 6-35
AUDIT OF DEFICIENCIES IN OFA s PURCHASE REVIEW PROCESS FOR BACKLOGGED LOANS Audit Report Number: 6-35 September 29, 2006 U.S. SMALL BUSINESS ADMINISTRATION OFFICE OF INSPECTOR GENERAL Washington, D.C.
More informationAccounts Receivable and Inventory Financing
Accounts Receivable and Inventory Financing Glossary Accounts Payable - A current liability representing the amount owed by an individual or a business to a creditor for merchandise or services purchased
More informationBusiness Lending: Lessons Learned and Effective Risk Management
Presenting Business Lending: Lessons Learned and Effective Risk Management Ryan Sturgis, Senior Manager Moss Adams LLP 503.478.2280 ryan.sturgis@mossadams.com Moss Adams Financial Institutions Practice
More informationCOMMERCIAL LOAN APPLICATION
COMMERCIAL LOAN APPLICATION CREDIT REQUESTED Amount Requested Term of Credit Requested Loan Type Credit Request Applicant Only Joint With Co-Applicant(s) Market Survey Purpose of Credit Request App # We
More informationCurrent Position Range Knowledge, Skills and Abilities Experience Years
Current Position Range Knowledge, Skills and Abilities Experience Years Executive Assistant 4 Sr. Executive Assistant 5 Finance & Reporting Systems Mgr 10 Learning Assistant 4 Legal Specialist 6 Loan Closing
More informationThird Party Relationships
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 A B D INTRODUCTION AND PURPOSE Background Yes/No Comments 1. Does the credit union maintain a list of the third party
More informationGeorgia s Capital Access Program
M PROFILE: CA Georgia s Capital Access Program Portfolio Insurance for Private Lenders Small Business Loans Georgia Department of Community Affairs 60 Executive Park South, NE, Atlanta, GA 30329 1 What
More informationMBL 2700 Business Loan Collection
MBL 2700 Business Loan Collection Effective: September 2011 Departments Impacted List areas of the Credit Union (departments/branches) affected by the procedure. Introduction The Introduction section contains
More informationFREQUENTLY ASKED QUESTIONS BUSINESS CONTINUATION. When should a business and its owners consider buying insurance on its key employees?
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA BUSINESS STRATEGIES Key Person Life Insurance FREQUENTLY ASKED QUESTIONS BUSINESS CONTINUATION When should a business and its owners consider buying insurance
More informationSSBCI PROGRAM PROFILE: LOAN PARTICIPATION PROGRAM. May 4, 17, 2011 State Small Business Credit Initiative (SSBCI) U.S. Department of the Treasury
SSBCI PROGRAM PROFILE: LOAN PARTICIPATION PROGRAM May 4, 17, 2011 (SSBCI) U.S. Department of the Treasury What is a Loan Participation Program? A Loan Participation Program enables small businesses to
More informationIntroduction to Mortgage Lending
Many experts think that credit unions have a high potential for greater growth in the mortgage lending area. In this chapter we explain the development of mortgage lending at credit unions, how mortgage
More informationHow to Successfully Apply for a Business Loan
How to Successfully Apply for a Business Loan Presenter Marc Rand 20 years lending experience, including nonprofits Micro lending to large multinational corporate lending. Lender, donor, foundation, and
More informationHouse Committee on Financial Services. November 29, 2012
House Committee on Financial Services Joint Hearing Before the Subcommittee on Financial Institutions and Consumer Credit and the Subcommittee on Insurance, Housing and Community Opportunity Entitled Examining
More informationBankruptcy and Short Sales
Bankruptcy and Short Sales What agents need to know April 2013 Bankruptcy and Short Sales What happens to the short sale if the seller files for bankruptcy? Bank of America can review a short sale offer
More informationHow Bankers Think. Build a sound financial base to support your company for future growth
How Bankers Think Build a sound financial base to support your company for future growth Presented by: Lisa Chapman Business Planning, Social Media Marketing & SEO 615-477-8412 Questions to Consider First
More informationThe Business Case For SBA 7a Lending For Community Banks
The Business Case For SBA 7a Lending For Community Banks How Community Banks Can Prudently Make Loans to Small Business By: Joanne Thompson SBA OneSource, LLC This paper examines the business reasons for
More informationNCUA LETTER TO CREDIT UNIONS
NCUA LETTER TO CREDIT UNIONS NATIONAL CREDIT UNION ADMINISTRATION 1775 Duke Street, Alexandria, VA 22314 DATE: August 2008 LETTER NO.: 08-CU-19 TO: SUBJ: Federally Insured Credit Unions Third-Party Relationships:
More informationLOANLINER Business Lending and Deposit Compliance Overview
LOANLINER Business Lending and Deposit Compliance Overview Credit union member business lending (MBL) is heavily regulated by the Federal Credit Union Act and NCUA MBL rules. These laws impose a number
More informationUSAID-Funded Economic Governance II Project Credit Risk Workshop - Intermediate March 2006. The Credit Process. Funded by: 2006 BearingPoint, Inc.
USAID-Funded Economic Governance II Project Credit Risk Workshop - Intermediate March 2006 The Credit Process Funded by: 2006 BearingPoint, Inc. Table of Contents MODULE 2: THE CREDIT PROCESS OVERVIEW...1
More informationRegulatory Practice Letter January 2014 RPL 14-03
Regulatory Practice Letter January 2014 RPL 14-03 CFPB Nonbank Supervision of Student Loan Servicers Final Rule CFPB Student Loan Ombudsman - Annual Report Executive Summary Effective March 1, 2014, the
More informationWorking Out Problem Loans
Working Out Problem Loans For Hotels and Other Commercial Real Estate Projects DEAN GLOSTER GARY KAPLAN Agenda Context: It s More than the Economy Goals and Realistic Outcomes Know Your Lender/Borrower
More informationBlue Clover Financial s Money Code
Blue Clover Financial s Money Code Money Code Thank You For Attending! We hope to impart something new and of value to you. Additionally, if it is a good fit to work together, we look forward to adding
More informationTitle XIV - Mortgage Reform and Anti-Predatory Lending Act. Short title: "Mortgage Reform and Anti-Predatory Lending Act"
Title XIV - Mortgage Reform and Anti-Predatory Lending Act Short title: "Mortgage Reform and Anti-Predatory Lending Act" Subtitles A, B, C, and E are designated as Enumerated Consumer Law under the Bureau
More informationWHAT LENDERS ASK FOR & WHY
WHAT LENDERS ASK FOR & WHY How to Put Your Best Foot Forward INTRODUCTION If you re considering a business loan, it s important to know what lenders will ask for to ensure you have the best chance for
More informationCollections and Client Recovery: An Evolutionary Approach
Collections and Client Recovery: An Evolutionary Approach Global economic growth has been limited since 2008. The combination of high unemployment rates along with high levels of government debt and overall
More informationSo You Want to Borrow Money to Start a Business?
So You Want to Borrow Money to Start a Business? M any small business owners cannot understand why a lending institution would refuse to lend them money. Others have no trouble getting money, but they
More informationMortgage Forgiveness Debt Relief Act. Cancellation of Debt (COD) Income. Recourse Loan 10/6/2014. Consequences of the expiration of the act
Mortgage Forgiveness Debt Relief Act Consequences of the expiration of the act Cancellation of Debt (COD) Income When a loan is forgiven without being paid back, COD Income is created. That amount is included
More informationHow to Stop and Avoid Foreclosure in Today's Market
How to Stop and Avoid Foreclosure in Today's Market This Guide Aims To Help You Navigate the foreclosure process [Type the company name] Discover all of your options [Pick the date] Find the solution or
More informationSupervisory Letter. Evaluating Credit Union Requests for Waivers of Provisions in NCUA Rules and Regulations Part 723, Member Business Loans (MBLs)
Supervisory Letter Evaluating Credit Union Requests for Waivers of Provisions in NCUA Rules and Regulations Part 723, Member Business Loans (MBLs) I. Introduction. NCUA provides flexibility in applying
More informationBe prepared for your Mortgage Closing.
Be prepared for your Mortgage Closing. The Process That Leads Up to Your Mortgage Closing. Once you ve purchased your property and completed a loan application, or made a loan application for a refinance,
More informationLOAN SERVICING REQUEST GUIDELINES FOR THE COMMERCIAL LOAN SERVICING CENTERS
LOAN SERVICING REQUEST GUIDELINES FOR THE COMMERCIAL LOAN SERVICING CENTERS FRESNO SERVICING CENTER 2719 N. AIR FRESNO DR., STE 107 FRESNO, CA 93727 (559) 487-5650 LITTLE ROCK SERVICING CENTER 2120 RIVERFRONT
More informationWHAT IS BUSINESS CREDIT?
1 WHAT IS BUSINESS CREDIT? Why Do I Need Credit? Establishing a good credit rating is an important financial priority for every business. Having good business credit means that owners of businesses can
More informationCLFP EXAMINATION OUTLINE
CLFP EXAMINATION OUTLINE Part I 2 Hours (275 points) History and Purpose of Leasing... 75 points Classification and Terminology... 150 points Lessor-Vendor Relationships... 50 points Part II 2 Hours (275
More informationAsset Quality Section 219
Leasing Activities A lease is a contract between the owner of a property, the lessor, and a person or company authorized by the lease contract, the lessee, to use the property. The lease contract specifies
More informationCREDIT BUREAU REPORTING
MINIMIZING THE RISKS OF COLLECTIONS INDUSTRY CREDIT BUREAU REPORTING Minimizing Regulatory & Litigation Risk A White Paper by Jennifer Maisano, President & CEO, Credit Bureau Strategy Consulting, LLC 2008
More informationRe: Comment Letter on the Proposed Amendments to NCUA s MBL Rule
August 31, 2015 National Credit Union Administration 1775 Duke St. Board Secretary Alexandria, VA 22314 RE: Comments on Proposed Rulemaking for Part 723; RIN 3133 AE37 Dear Gerard Poliquin, August 31,
More informationDodd Frank Act Consumer Financial Protection Bureau Mortgage Lending
Dodd Frank Act Consumer Financial Protection Bureau Mortgage Lending A Briefing for the Texas House Investments and Financial Services Committee John C. Fleming Consumer Financial Protection Bureau (CFPB)
More informationSAFE Credit Underwriting Guidelines for Non-Profit Lending. Organization Type: NON-PROFIT ORGANIZATIONS. Bridge Loan Guidelines.
Introduction The Credit Underwriting Guidelines (CUG) manual is designed for use with products delivered to faith-based and non-profit organizations. The guidelines herein govern the granting of credit
More informationSUPERVISORY LETTER NATIONAL CREDIT UNION ADMINISTRATION OFFICE OF EXAMINATION AND INSURANCE 1775 DUKE STREET, ALEXANDRIA, VA 22314
SUPERVISORY LETTER NATIONAL CREDIT UNION ADMINISTRATION OFFICE OF EXAMINATION AND INSURANCE 1775 DUKE STREET, ALEXANDRIA, VA 22314 DATE: March 2013 Supervisory Letter No. 13-02 TO: SUBJECT: All Field Staff
More informationTYPES OF RISK NGH CU recognizes that there are basically three types of risk when granting loans:
Revised 5/23/05 RISK BASED LENDING POLICY The NGH Credit Union Board of Directors recognizes the importance of managed risk and is committed to offering credit (loans) to as many members as possible. The
More informationTHIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING. SHORT SALE ADDENDUM
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 The printed portions of this form, except differentiated additions,
More informationMember Business Loans; Commercial Lending Comments on Proposed Rulemaking for Part 723
August 31, 2015 Mr. Gerard S. Poliquin Secretary of the Board National Credit Union Administration 1775 Duke Street Alexandria, VA 22314-3428 Re: Member Business Loans; Commercial Lending Comments on Proposed
More informationSOLUTIONS TODAY FOR TOMORROW S COMPLEX MORTGAGE INDUSTRY
SOLUTIONS TODAY FOR TOMORROW S COMPLEX MORTGAGE INDUSTRY SWBC Lending Solutions provides cost effective and compliant lending products for originators, loan servicers, and portfolio managers. Built off
More informationPART 723 MEMBER BUSINESS LOANS
Pt. 723 PART 723 MEMBER BUSINESS LOANS Sec. 723.1 What is a member business loan? 723.2 What are the prohibited activities? 723.3 What are the requirements for construction and development lending? 723.4
More informationCHICAGO/#891704.5 DEBTOR IN POSSESSION FINANCING
DEBTOR IN POSSESSION FINANCING I. PREAMBLE Every industry has its slogans; debtor in possession financing (commonly referred to as DIP Financing) is no different. The First Lesson, Your first loss is your
More informationV600 Introduction to Mortgage Lending. Robin J Wybenga, CFO, TBA Credit Union robinw@tbacu.com 231.946.7090
V600 Introduction to Mortgage Lending Robin J Wybenga, CFO, TBA Credit Union robinw@tbacu.com 231.946.7090 Introduction Objectives 1. Identify the key benefits your CU gains by offering real estate lending
More informationB NR Consulting Network - The Truth About Business Credit
2007-2008 Edition BNR Consulting Network 11/17/2007 2 What is business credit? Many business owners are unaware of corporate credit and how to obtain it. BNR Consulting Network is proud to be one of very
More information