Module 2: The
Application Process
Recap of Previous
Day
Module Overview
Day 2
In this module of the Consumer Lending Training (CLT) you will learn how to move your customer through the application process. This process allows you to understand the needs of the customer and his or hers borrowing needs. Having a complete application will give you leverage when making your final lending decision.
Terminal Performance objectives:
Upon completing this module you will be able to do the following
Identify crucial areas of the consumer loan application.
Evaluate a
completed application for accuracy.
Demonstrate
how to deliver Great Customer Service and still gather the information needed
to complete a loan application.
Develop
your own technique to gather information for this loan and understand how to
look for other opportunities for the bank and its customers.
Criteria:
Each participant will be measured by a module end progress test and by classroom discussion to ensure the participant is learning the correct process In which to take and complete an application
Instructional Material Discussion
The loan application also know as the loan interview
The loan interview is one of the most crucial steps to the loan process.
It requires you the lender to use your knowledge of Credit policy, government regulations, product knowledge of your individual institution, customer service and sales skills.
As a lender you are the EXPERT
Your customers look to you for financial advice.
Your customer EXPECTS
You to have the know how to complete their request
You to make the loan decision and to answer questions they have?
Your Financial Institution EXPECTS
You to provide excellent customer service
Gather enough information about the customer to enable you to make an informed credit decision and to sell the bank’s products and services
A Complete Loan Application :
Since this program is an overview of Consumer lending training each of your financial institutions may have a different application they have in place that meets the needs of the customers and the bank’s lending policies. However regardless of your institution you will need the following information to complete a loan application.
Legal name
Current and permanent address ( if less than 2 years previous address)
SSN and Date of Birth
Current Employer and Salary Compensation ( Do not calculate overtime) ( if less than 2 years previous employer)
Other source of Income if applicable
HMDA Information if required- Please check your HMDA Regulation for complete guidelines to this Regulation
Co- Applicant information if applicable
Nearest relative name, address and phone number (Gathering this data helps the collections analyst if the loan becomes in a delinquent or default status.
A completed answer to Bankruptcy question. If yes, Lender must know why.
Current Relationship with Bank and other assets
Please check your specific institution for over guidelines that may be in place such as pay stubs, and taxes.
Why does the Bank need this information ?
Having an incomplete application can slow day the lending decision and cause frustrations on both the lender and the customer. A best practice is getting all the information you need during the initial contact with the customer.
When reviewing a loan application never assume any information, gather this information before continuing. Assuming incorrect information on an application can have a negative impact on the customer and the bank as well as the outcome of the lending decision.
Discussion of Assumed information
The Loan Application and SALES
As lender referring to other business lines is a major part of our job. When taking a loan application we can enhance or relationship with the customer by profiling to better service their needs.
Interactive Learning:
Participants will work in groups of 2 or 3 depending upon class size in a role play exercise. The goal and objective of this outcome is for each person to understand the roles of both the customer and the lending and learn first hand the importance of having a completed loan applications
Discussion of Role Play: Did any participant have an incomplete application? If yes how did you respond to this?
Progress Test for Module 2 Please use additional paper for answers
Wrap up Session
Today I
learned……. Or I discovered……….