Adverse Action
- Submitted by: kzcoolmom
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- Category: Other
- Date Submitted: 10/21/2011 06:00 PM
- Pages: 3
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Adverse Action
The last few presidential administrations there have made several changes in the way banks are required to notify borrowers that they have been denied a loan. Where I work we call the process adverse action. This has happens once there has been a decision on a file the lender must inform the borrowers of credit decision, how the decision was ascertain and what their rights are under federal lending regulations. Every lender has had to interpret what each new requirement means to their business. There are several ways technology can be used to I ensure that the regulations are followed. SharePoint could used to track the request, verify that the proper documents are attached and all information that is needed to correctly process they request.
Currently the process that the loan administration team follows for the business banking line of business is a very manual process that entails paper, scanning, e-mail, and spreadsheet tracking. This very time-consuming, manual process does not ensure that the lenders are following the process, correctly completing the paperwork, or submitting all the required information.
The process starts when a Business lender has denied a loan. The lender completes and mails the denial letter to the commercial borrower, letting the business know that the loan has been denied. Once these forms are mailed, the lender is required to submit the documentation and all other information to Loan administration for document retention. Business banking is using a workbook to track their loans they also move it from the pipeline tab on the excel workbook to the denied tab. It is hit or miss on whether the lender submits the required documents for Audit review. Fifty percent of the files that are submitted are missing a document or a signature, which then becomes a task for Loan Admin team to keep following up with the lenders until the required information is obtained. To the...
The last few presidential administrations there have made several changes in the way banks are required to notify borrowers that they have been denied a loan. Where I work we call the process adverse action. This has happens once there has been a decision on a file the lender must inform the borrowers of credit decision, how the decision was ascertain and what their rights are under federal lending regulations. Every lender has had to interpret what each new requirement means to their business. There are several ways technology can be used to I ensure that the regulations are followed. SharePoint could used to track the request, verify that the proper documents are attached and all information that is needed to correctly process they request.
Currently the process that the loan administration team follows for the business banking line of business is a very manual process that entails paper, scanning, e-mail, and spreadsheet tracking. This very time-consuming, manual process does not ensure that the lenders are following the process, correctly completing the paperwork, or submitting all the required information.
The process starts when a Business lender has denied a loan. The lender completes and mails the denial letter to the commercial borrower, letting the business know that the loan has been denied. Once these forms are mailed, the lender is required to submit the documentation and all other information to Loan administration for document retention. Business banking is using a workbook to track their loans they also move it from the pipeline tab on the excel workbook to the denied tab. It is hit or miss on whether the lender submits the required documents for Audit review. Fifty percent of the files that are submitted are missing a document or a signature, which then becomes a task for Loan Admin team to keep following up with the lenders until the required information is obtained. To the...