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Examiners will be scrutinizing credit unions engaged in specialized higher-risk loan activities

Submitted by sevans on Thu, 11/20/2014 - 4:07pm

Examiners will assess whether a credit union involved in specialized higher-risk lending activities has adequately planned for, and is monitoring and controlling those activities. Management will be adversely rated for failure to manage and control such programs. 

Related Files: 
PDF icon Risk Guidance 12 CFR Part 34 Letter NO 04-CU-13
Documentation Type:
  • Federal Regulations
Tools:
  • CostPro Suite
Industry Phrases:
  • Risk Based Pricing
  • Risk Based Loan Pricing
  • Risk Based Lending

More like this

  • Items of special scrutiny examiners will give to credit unions engaged in RBL
  • Higher risk lending should be compatible with a credit union’s risk tolerance, management capabilities and strategic goals
  • What examiners will be looking for in a CUs Risk Based Lending program
  • This document focuses on, and describes, three higher risk lending activities: sub-prime; indirect; outsourced
  • When properly managed, RBL rewards borrowers who are careful with their credit but requires vigilant credit union oversight
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