Consumer Lending Basics

Course Description

Seat Time: 3.25hrs - Desc:

This course will introduce the learner to the skills and standards necessary to be a successful consumer lender. This course will familiarize the learner with the various aspects of consumer lending, including the types of consumer loan applications, 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:

• How to handle information in a way that ensures confidentiality.
• How credit scoring works.
• The institution’s consumer lending culture.

Course Topics

T1. What Is Consumer Lending?: This topic will explain consumer lending, and will detail the types of borrowers that a lender may come across and the difference between consumer and commercial loans.

T2. Types of Consumer Loans: This topic will detail the different types of loan products available to fulfill borrowers' needs, such as installment loans, lines of credit, single-payment loans, and more.

T3. Types of Applications: This topic will explain different types of applications that customers may use to apply for consumer credit, such as individual, joint, co-signer, and third-party pledger.

T4. The Bank's Consumer Lending Culture: This topic will introduce the learner to a financial institution's consumer lending culture, and will discuss products, the focus on customer needs, seamless process, and more.

T5. Consumer Lender Skills: This topic will discuss the skills necessary to succeed as a consumer lender, such as effective communication, attention to detail, sales ability, and more.

T6. Consumer Lender Standards: This topic will discuss the performance standards to which consumer lenders are held, such as professionalism, punctuality, customer service, and more.

T7. Handling Confidentiality: This topic will encourage the understanding of confidentiality as part of the professionalism of a commercial lender, with a focus on the security of customer and co-worker information.

T8. The Five 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.

T9. Establishing the Five C's: This topic will discuss the tools available to lenders when evaluating the borrower's 5 C's of Credit, such as credit bureaus and scoring, evaluations, and processes.

T10. Credit Bureaus: This topic will evaluate the purpose and usefulness of credit bureau agencies to lenders when considering a borrower's acceptability.

T11. 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.

T12. Credit Scoring: This topic will describe how credit scoring works and the two primary uses for credit scores: qualifying new applicants and managing existing borrowers.

T13. Lending Decisions: This topic will educate the learner on what lending decisions the financial institution may make, including approval, counteroffer, decline, or redecision.