Consumer Lending, a core credit course for retail lenders, uses the proven Decision Strategy™ method to teach a systematic approach to making consumer loan decisions.
What is Consumer Lending? Consumer Lending begins with a comprehensive, six-module eLearning course with many case studies and practice opportunities.
- Preliminary Assessment lays the groundwork for evaluating whether the loan request is within policy and reasonable, and begins the exploration of the applicant’s needs.
- Repayment Source Analysis teaches participants to evaluate the income sources from which the loan will be repaid; use credit reports and credit scores; and calculate debt service capacity.
- Verifying Income with Tax Returns takes the mystery out of working with a personal tax return. Participants learn to verify eligible income from sources other than salary, such as investments, rental property, sole proprietorships, farms, and ownership interests in partnerships and S corporations.
- Making the Credit Decision focuses on synthesizing the analysis and recommending a sound credit solution, including appropriate loan structure and security.
- Documenting and Managing the Loan explains key loan documents and provides checklists to ensure that their documentation is complete and correct.
After learners have successfully completed the eLearning course, they’re eligible to attend Consumer Lending: Skills Application Lab, a one-day, facilitated event during which they apply their skills and knowledge by making decisions about consumer loan requests of increasing complexity.
The opportunities participants evaluate include requests for an unsecured personal loan, a home improvement loan, an auto loan, and a debt consolidation loan; several of the cases have a variety of acceptable solutions and potential loan structures, fostering deep discussions around how to evaluate risks and create a balanced solution for the borrower.