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Consumer Lending-Credit Unions

Business Issue - Successful consumer banking requires the ability to evaluate, negotiate, and monitor loans and lines of credit within today’s stringent regulatory environment. Industry sources say that one-third of all nonperforming consumer loans go bad within the first 12 months—and that the risks can often be identified before the credit is extended.

Omega Performance’s Solution - The Consumer Lending training program presents Omega Performance’s proven methods of evaluating, negotiating, and monitoring consumer loans. Participants learn all the skills they need to respond to members quickly and profitably while mitigating credit risk and avoiding regulatory compliance exposure. The core of Consumer Lending is Omega Performance’s exclusive Decision Strategy™, a step-by-step process for investigating, analyzing, and interpreting borrower information.

What Is Included

Consumer Lending contains seven modules, each of which covers an important facet of retail credit:

Introduction to Consumer Credit discusses the environment in which credit unions offer consumer credit, the objectives of a consumer loan, and the various consumer lending products available to members.

Lending Regulations introduces the major federal regulations that apply to lenders as they talk to prospective borrowers, evaluate applications, and document loans. Participants learn the purpose of each regulation, how it affects their work, common compliance pitfalls, and penalties for noncompliance.

Preliminary Analysis reviews the basic analytical skills used to make a credit decision, with a focus on the initial steps: the loan request review and the repayment source preview.

Repayment Source Analysis covers both a systematic strategy for collecting and evaluating applicant information and the basic analytical skills used to assess the applicant’s ability and willingness to repay the loan.

Making the Credit Decision teaches participants how to use these analytical skills to arrive at a loan decision.

Home Equity Lending discusses the features of home equity term loans and lines of credit, the risks of these types of credit, and how to use the Decision Strategy to evaluate and analyze applicants’ requests for home equity credit.

Documenting and Managing the Loan explains how to document and monitor the loan so that it meets the lender’s expectations and those of the borrower.

At the end of each module, participants take a progress check to assess their skills mastery. After completing all seven modules, they take the course posttest, which assesses their ability to apply all the skills learned in Consumer Lending to making and justifying a sound consumer loan decision.

Delivery Options

To effectively implement Consumer Lending, Omega recommends one of three delivery options: self-study, self-study with mentor, or self-study with workshop.