When a credit union engages in any higher risk activity, it should be compatible with a credit union’s risk tolerance, administrative capabilities, and strategic goals. The projected and realized impact on a credit union’s financial performance should be analyzed regularly. Reasonable program limits should be established as well as on-going program monitoring and analysis.
Submitted by sevans on Thu, 11/20/2014 - 4:06pm
More like this
- Examiners will be scrutinizing credit unions engaged in specialized higher-risk loan activities
- 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
- Items of special scrutiny examiners will give to credit unions engaged in RBL
- The philosophy of Risk Based Lending