GSB – Introduction to Consumer Lending
Are you new to consumer lending? Do you work closely with consumer lending or work in a supporting role? This program is for you.
We start with comparing and contrasting consumer lending to commercial lending, then defining consumer lending. Next up is how consumer lending consists of two primary types of products delivered in a highly automated and standardized process that has a focus on compliance. After providing an update on consumer lending and consumer financial health trends, we turn to marketing of consumer credit and the many non-bank competitors.
The centerpiece of consumer credit analysis is the three components of debt repayment capacity, collateral support and credit history. We provide an overview of each of these key areas, typical bank parameters or targets, and how they affect the lending decision, along with some situations and example cases. This includes the challenges and recent trends with credit bureau reports.
Residential mortgages loom as the largest credit obligation for most consumers, along with borrowing on the home’s equity. We provide a brief overview of this market, including recent trends and how banks are active in this market in various ways from a strategic standpoint.
All of these topics are explored in more detail with the other programs with the GSB Online Consumer Lending Series (see below).
We conclude with how consumer lending is consistent with the traditional “five cs of credit.”
Topics that will be covered during the seminar:
• Compare and contrast consume lending to business and commercial lending
• Identify the two primary categories of consumer credit and the focus on compliance
• Describe consumer assets, liabilities and cash flow as used in the credit decision
• Compare typical advance rates for various types of consumer loan collateral
• Identify key factors and issues with using credit bureau reports
• Describe key issues and trends in residential and home equity lending
- Learn about the basics of consumer lending
- Explore marketing consumer loans
- Gain an understanding of how banks make consumer lending decisions based on the five (5) C’s of credit.
- Review the basics of consumer loan structure, support, documentation, and compliance with an auto loan, RV loan, and HELOC as examples
- Apply consumer lending through case studies
Assistant relationship managers, branch managers that lend to business owners, commercial lenders, community bankers, Consumer lenders, credit analysts, involved in or supporting/working with consumer and residential lending, loan review specialists and others new to, portfolio managers, private bankers, small business lenders, and special assets officers.
Richard Hamm, Advantage Consulting & Training
Live presentation $330
Recording available through January 17, 2024