August 29-30, 2023
9am-4pm (Both Days)
Member Fee: $425
Non-Member Fee: $625
This two-day seminar follows the consumer lending process from taking the application to making the final credit decision. Using cases and providing best practices, participants will learn how to better navigate what can be a tricky process. Because consumer lending tends to be one of the most automated and regimented lending functions in banking, special emphasis will be placed on recognizing exceptions to established lending policies and practices, and how to properly mitigate these risks – when it makes sense for bankers to intervene and grant a waiver.
We also will explore personal tax returns and developing related personal cash flow, including small business and self-employed borrowers. While this program provides a brief overview of various compliance and fair lending regulations, the focus is on the underwriting and loan analysis process beyond compliance.
- Current industry trends:
- Recent issues, such as the pandemic, consumer savings and strong liquidity
- Re-thinking the predictive power of credit scores
- Overview of residential mortgages and home equity lending
- Taking the loan application (or personal financial statement), getting the needed information, and issues with helping the customer complete the schedules
- Beyond W-2’s and pay stubs: Tips on how to qualify income and verify employment
- Myths and realities of credit bureau reports
- Getting beyond “the dog ate my homework” types of excuses for poor credit history
- A framework for dealing with applicants that have a previous bankruptcy
- Credit policy exceptions are serious business – your reasons for granting a waiver must be equally serious
- Collateral considerations
- Beyond the “big three” of credit score/history, debt ratio and loan-to-value: Tips on using other important factors to mitigate risks and underwrite a solid loan
- Update on residential mortgage lending and the basics of the mortgage loan process
- Key issues when dealing with residential construction loans
- How to compile and construct personal cash flow from tax returns
Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, credit analysts, loan review specialists, consumer lending managers and credit officers
Richard Hamm has been training bankers for 30+ years, designing and delivering programs specializing in commercial lending and credit, including portfolio and risk management, commercial real estate (CRE) and appraisals, plus selling and negotiating skills, and director training. He is based in Huntsville, AL and has owned/operated Advantage Consulting & Training for 15+ years, after a 22-year banking career including senior positions in lending and credit, plus president of a community bank through formation and acquisition of an existing bank. During his banking career he was active within RMA’s chapter structure, plus serving on several committees at the national level. He has written over 20 articles for The RMA Journal and still serves on The Journal’s Editorial Advisory Board. He has created several courses for RMA, including the first versions of Global Cash Flow and Construction Loan Administration. He has also been involved in updating, editing and teaching most of RMA’s commercial real estate courses. In 2010 he served as subject matter expert for RMA’s e-learning/online The Commercial Real Estate Lending Decision Process curriculum. In 2012 Richard edited, updated and revised ABA’s long-standing textbooks Commercial Lending and Analyzing Financial Statements, as well as provided content for an electronic curriculum based on both books. The content was again updated in winter 2018-2019 and winter 2019-2020 to add content on fraud and anti-money laundering, asset-based lending and CRE lending. Starting in 2016, he has been facilitating periodic “senior lender forums” for state banking and community banking associations, currently with eight groups across three states, as well as quarterly and annual senior lender events for the Barret School of Banking. He has BS and MBA degrees from the University of Alabama.
Due to commitments we must make, if you must cancel your registration for this program, please do so at least 3 business days prior to the meeting date to avoid a $125 cancellation fee. Any registrant who does not cancel will be billed the full registration fee and sent the materials. Substitutions are welcome at no additional charge.
Click here for area and hotel information