Submitted by sevans on Wed, 11/19/2014 - 4:02pm

RBL Quality Control

Quality control measures may include, although are not limited to, the following:

  1. Code loans by risk tier (1, 2, 3 or A, B, C) and monitor delinquency and losses by tier. At a minimum, code and track the highest risk tiers. Adjust criteria if delinquency or losses are unacceptable. Retain monitoring reports to support the business purpose of the criteria adjustment.
  2. Evaluate portfolio risk by tracking delinquency and performance of loans based upon the origination date.
  3. Analyze the net income contribution of each tier of the portfolio prior to implementation and quarterly thereafter to determine whether loans are priced appropriately and fairly.
  4. Evaluate all rejected applications (i.e., some applications that are rejected by a scoring system may not measure true credit-worthiness).
  5. Review performing loans after a specified period (i.e., 6-12 months) and upgrade to lower rates when repayment and credit performance places the borrower into a new tier.
  6. Closely monitor member complaints for signs of potential discrimination or problem employees.
  7. Re-evaluate the risk-based lending policies, procedures, and overall program periodically and retain documentation of the evaluation process.
  8. Conduct a self-assessment to review overall program compliance. A self-assessment may be performed internally or through the use of outside consultants.
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