OK, here is a screwy one. I have an indirect dealer loan to an individual who listed an incorrect address on his application. I came across it because it would not census tract. I need to tract it because about 50% of the time when the examiners come in they say that our indirect portfolio is so large they want to include it, fun.

Anyway, while trying to pull up the address I discovered that his father lives on the same road, just a different house number. Then on a letter in his file from a creditor it shows another address. When I pull this up with the State Department of Assessment it shows that he owns and lives at this other address in the city. So, I would guess that he is using his dad’s address for insurance purposes.

Anyway, do I change his address to his father’s correct address and census tract that or change it to his legal address and census tract that?

Of course, had the LO done his job and made note of the credit bureau noting in asterisks that the address discrepancy was a substantial difference I would not have spent the last ½ hour tracking this guy down!

I don't guess. Have the lender call and get the correct address for the loan. If he forgot the first time, he won't again when he has to go back. You need collateral address or business address, NOT mailing (his dad's) address.

Thank you Dawnie, in my agitated state I forgot that I need collateral address and should go with that.

As for getting with the LO, they are in another department and their head does not think it is important to verify addresses.

Go over their head. Ask them how they feel about a 100% scrub of CRA data, which will fall to them if they do not cooperate.

You can't do your job without management support. If it's not there, find a bank that does support you.

The ONLY department that does not verify the address is the indirect lending department. They have made it a "Business Decision" as it would take a lot of time, and therefore money, to verify the address on all of the indirect loans.

Life would be so much easier if the government would decide to let us keep a copy of the driver's license that the dealership makes on every loan. But I won't hold my breath for that change!

They don't have to "verify it" they just have to write down the businesses mailing AND CRA address. That's not a business decision Rie, because the cost of not providing the data in an accurate format is MUCH higher than getting it in the first place. Filling in a blank is pretty quick and easy.

What type of indirect loans? You may want to check that they are coding them correctly for the Call Report, too. With the atmosphere of speed, any different codes, addresses, etc. are often seen as lag time and not given priority, unless you have a mechanism to impress the importance to them of these things. (A tracking report that goes to the board works nice!)

They are dealer loans and have their own class code so the Call report is ok.

This portfolio is basically about numbers, large numbers. Since they produce a lot and have low delinquency, little, if any, verification is done.

That's fine for credit darling...but there isn't a lazy code for CRA reporting on dealer loans

I agree, but rank has its privileges and I don't have the rank that he does. He is the only officer that does not support my efforts with CRA. I guess there is usually one in any organization, and unfortunately, he has the rank and attitude to get away with it. I have gone over his head but he argues his point with our superiors and almost always wins. This is not the only thing he pushes in his position and gets away with, but that is a whole other story probably more suited for the HR threads.

So, guess who gets stuck with the work? Luckily I am very good with computers and can extract his small business loans from the main frame, track down most of the information I need, some from the file and the rest using the internet and then re-code those that need coding. I “scrub” the small business loans and just do some quick runs through the rest of the portfolio for obvious mistakes. I figure it does not have to be quite as clean since it is not technically required by the regulation. It is a real pain in the tush for me. But, I really like everything else about this bank, my job, and those that I work with.

Besides, don’t you always say that CRA is only for those who like a challenge? Well, I do love challenges and he just adds to the challenge!

Here's a little fun trick for folks like that Audit 100% of his files. Request them the week they are booked and don't take no for an answer. The shear inconvenience of sending you 100% of the files will kill this little problem. I've had great success with this tactic, and hear from others I've suggested it to that it works well