Commercial Lending Procedures

Course Description

Seat Time: 3hrs - Desc:

This course will introduce the learner to the extensive procedures involved in commercial lending. The learner will become familiar with application process and documentation, the 5 C’s of credit and the tools associated with them, credit bureaus and their reports, and how to communicate loan decisions, among many other aspects. After completing this program the learner will understand:

• The underwriting process.
• How to analyze financial information.
• How to finalize a loan.

Course Topics

T1. Commercial Loan Applications: This topic will describe the first steps in the commercial loan application process, which include assessing the borrower's needs, taking the application, and providing all required disclosures.

T2. Documentation: This topic will focus on explaining all of the documentation that is necessary in the application process, which includes the application itself, along with disclosures to the borrower and documents from the borrower.

T3. Underwriting Guidelines: This topic will introduce the learner to the underwriting process and the underwriters' and processors' involvement in income verification requests, preliminary approvals, counteroffers, declines, and exceptions.

T4. Analyzing Financial Information: This topic will familiarize the learner with the process of analyzing financial information, including the analysis of information provided on 1040s, personal statements, balance sheets, income statements, and more.

T5. Tax Returns: This topic will examine the different businesses required to file for tax reporting purposes, such as sole proprietorships, D/B/As, and C-Corporations.

T6. The 5 C's of Credit: This topic will provide the learner with an overview of the details, better known as the "5 C's", to consider when making a credit decision: character, cash flow, capacity, collateral, and conditions.

T7. Tools for Establishing the 5 C's of Credit: This topic will discuss the tools available to commercial lenders when evaluating the borrower's 5 C's of Credit: Credit bureaus and scoring, evaluations, and processes.

T8. Credit Bureaus: This topic will evaluate the purpose and usefulness of credit bureau agencies to lenders when considering a borrower's acceptability.

T9. Reading Credit Bureau Reports: This topic will deliver further material concerning credit bureau reports and the appraisal of such information, which includes the borrower's credit history, balance information, and more.

T10. Business Bankruptcy: This topic will include an introduction to bankruptcy, and the two major types for which business file.

T11. Commercial Loan Decisions: This topic will focus on how different loan decisions are communicated to the borrower; the possible loan decisions are approval, counteroffer, or decline.

T12. Closing Documentation: This topic will explain the loan finalization process, with information on closing documents for every loan and situation.