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Consumer Lending Basics

Overview

This course will introduce the learner to the skills and standards necessary to be a successful consumer lender. This course will familiarize the learner with the various aspects of consumer lending, including the types of consumer loan applications, the 5 C’s of credit and the tools associated with them, credit bureaus and their reports, and how to communicate loan decisions, among many other aspects. After completing this program the learner will understand:

  • How to handle information in a way that ensures confidentiality.
  • How credit scoring works.
  • The institution’s consumer lending culture.

Contents

T1. What Is Consumer Lending?: This topic will explain consumer lending, and will detail the types of borrowers that a lender may come across and the difference between consumer and commercial loans.

T2. Types of Consumer Loans: This topic will detail the different types of loan products available to fulfill borrowers needs, such as installment loans, lines of credit, single-payment loans, and more.

T3. Types of Applications: This topic will explain different types of applications that customers may use to apply for consumer credit, such as individual, joint, co-signer, and third-party pledger.

T4. The Banks Consumer Lending Culture: This topic will introduce the learner to a financial institutions consumer lending culture, and will discuss products, the focus on customer needs, seamless process, and more.

T5. Consumer Lender Skills: This topic will discuss the skills necessary to succeed as a consumer lender, such as effective communication, attention to detail, sales ability, and more.

T6. Consumer Lender Standards: This topic will discuss the performance standards to which consumer lenders are held, such as professionalism, punctuality, customer service, and more.

T7. Handling Confidentiality: This topic will encourage the understanding of confidentiality as part of the professionalism of a commercial lender, with a focus on the security of customer and co-worker information.

T8. The Five Cs of Credit: This topic will provide the learner with an overview of the details, better known as the 5 Cs, to consider when making a credit decision: character, cash flow, capacity, collateral, and conditions.

T9. Establishing the Five Cs: This topic will discuss the tools available to lenders when evaluating the borrowers 5 Cs of Credit, such as credit bureaus and scoring, evaluations, and processes.

T10. Credit Bureaus: This topic will evaluate the purpose and usefulness of credit bureau agencies to lenders when considering a borrowers acceptability.

T11. Credit Bureau Reports: This topic will deliver further material concerning credit bureau reports and the appraisal of such information, which includes the borrowers credit history, balance information, and more.

T12. Credit Scoring: This topic will describe how credit scoring works and the two primary uses for credit scores: qualifying new applicants and managing existing borrowers.

T13. Lending Decisions: This topic will educate the learner on what lending decisions the financial institution may make, including approval, counteroffer, decline, or redecision.

Please note that any legal and compliance references in this course will pertain to US legislation.