if someone were to ask you why its not a good thing to have loan programs/policies and then make exceptions to those polices your answer would be.....?

I feel that a bank would be open to possible discrimination, probably unintentional.

Anyone have any other arguments against making exceptions, or have comments about this topic, please feel free.

Policy are designed to ensure that the bank operates in a safe and sound manner. The board approves the policies and a high amount of exceptions without following the documentation standards for acceptable compensating factors (that should also be included by the Board) indicate disregard for the board approved policies.

A high level of exceptions could possibly indicate that the policy is too restrictive (i.e. committee approval required for small-dollar loans, etc.). But generally speaking ... I agree wtih RLC.

Examiners will criticize an excessive number of exceptions to loan policy. They will also criticize if you are not tracking those exceptions.

We are tracking them and, so far, there aren't too many...