the loan interview

8/22/2019 The Loan Interview

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Loan Interviewing Skillsand Techniques


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Topics

Primary Purpose of an Interview

Obvious Indicators

Hidden/Complex Indicators

Interviewing Questions-techniques and

restrictions

Documentation in Loan Notes


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Purpose of a Loan Interview

Gain enough information to paint a completepicture for loan officer to make the mosteducated decision

Provide the member with an opportunity to

communicate their lending needs in the loanapplication

Discovery of underlying issues that are notapparent

Interviewer is crucial link to Loan Officer


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Skills/Techniques

Every loan application is an interview

Consistent active listening

In-depth detailed questions

Thorough loan notes


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Obvious Indicators

Short residency/job time Past credit history Delinquent trade-lines Collection items Charge-offs Credit card limits maxed Multiple recent inquiries Multiple new trade-lines High debt ratios Not wanting to close credit cards if required


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Subtle Indicators

New members Living Situation Lives with Others or Other

Request to remove a joint off an existing loan

Changes in life situation (death, divorce, etc) Request a loan to Help Family

Request a loan to Pay Bills

Purpose codes: Legal Fees Bill Payment

Debt Consolidation

Taxes


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Subtle Indicators

Repeated debt consolidation loans

Pyramiding debt

Gambling warning signs

Sporadic credit history Members explanation of credit issue doesnt

line up with actual credit history

Multiple Names Multiple Loans


8/15

Interviewing Topics

Employment What are all your income sources that you would

like to use for a decision?

Short Job time reasons

Living Costs

What is the living situation? (lives with family orothers find out more)

What other financial obligations do you havebesides child support, unreported debts notetoting)


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Interviewing TopicsTough Questions

Medical collections why is it a collectionitem?

Civil Judgments what is the

status/obligation? Are Income Tax Returns Current?

Cards Maxed out why have you used all theavailable credit on your cards?

Number of credit cards why?

We have the right to ask about financialbehaviors


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Key Concept

Ask WHY!Face value answers arenot always sufficient


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Reg B: Asking Questions

Cannot Ask

Family Planning

Marital

status/income onindividual app

Income not listed onapplication

Nationality

Religion

Receipt of welfare

Health issues

Rephrase

Are you expectingyour income to

change over theterm of the loan?

What other sourcesof income would

you like to use toqualify for this loan?

Are you a Jamaicancitizen?


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Note Documentation

Only exclude collection items when anexplanation is given AND they total lessthan $200 each

Clearly explain: Purpose of all proceeds (every dollar)

Specific details of loan request

Explain what caused credit issues Provide description of plans member

has to fix credit issues


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Note Documentation

No need to state obvious facts that arefound in the application

Good/high ratios

Job time/Residency time

Explain all borrowers situations, not

just primary


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System Changes

Notes Functionality Applicant Info Screen (Primary, Joint,

Cosigner)

Liabilities Screen Projections Screen

Decision Options Screen

Funding Options Screen Loan Creation Screen


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Questions?

Your turn to make thedecisions!

the loan interview

Documents