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Underwriting Basics: Interviewing, Credit Reports, Debt Ratios & Reg B

Date: August 20, 2013

Time: 3:00pm - 4:30pm

Location: Webinar


This presentation will provide guidance for today’s regulatory standards for underwriting both consumer and business loans. Financial regulators continue to emphasize two points – verification and depth of documented support material. Insight will be provided from the presenter’s experience defending credit procedures brought in legal filings by financial regulators against two failed financial institutions.

Continuing Education: Attendance verification for CE credits upon request


    • Regulatory emphasis – the essence of the credit
    • Significant points in Reg B (Equal Credit Opportunity Act) and the Fair Credit Reporting Act
    • The credit risk evaluation process
      • The 5 Cs of credit
      • Proposed ATR/QM rule
      • Risk in a business credit exposure
    • Interviewing – making the most of the loan application interview
      • Loan request information
      • Documents to obtain or request during the application process
      • Pre-qualification
    • Verify application information:  asset ownership, deposit balances, appraisals, and evaluations
    • Underwriting consumer loans
      • Income and debt issues
      • Debt-to-income ratios
      • Payment shock
      • Using a risk-grading matrix
    • Underwriting business loans
      • Cash flow analysis – which income and debt numbers to use
      • Debt service coverage ratios
      • Structuring the loan
    • Documenting the credit decision – approval document
    • Electronic training log
    • Quiz you can administer to measure staff learning and a separate answer key


This presentation is for beginning and intermediate-skill level personnel including credit analysts, loan underwriters, commercial loan officers, loan review personnel, and directors on the Loan Committee.