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#1708263 - 06/07/12 10:07 PM NAICS Code - Loans
Doug Hendrickson Offline
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Doug Hendrickson
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Is there a regulatory requirement that all loan customers be able to be identified by NAICS code (i.e., the customer information record should contain the NAICS code)?

Or is this only required if you are participating in things like the RMA statment studies?
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Lending Compliance
#1708264 - 06/07/12 10:10 PM Re: NAICS Code - Loans Doug Hendrickson
Kathleen O. Blanchard Offline

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No, but it also helps for industry concentration and similar analysis.
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#1708268 - 06/07/12 10:51 PM Re: NAICS Code - Loans Kathleen O. Blanchard
Doug Hendrickson Offline
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Thanks. For those of you who may record the NAICS, is this done by the loan officer, loan processor or someone in the credit department? And how easy has it been for them to corrolate the business to a NACIS? Thanks.
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#1708269 - 06/07/12 10:55 PM Re: NAICS Code - Loans Doug Hendrickson
Kathleen O. Blanchard Offline

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Everywhere I ever was involved in this it started with the lender or lending admin. Some discussion would often take place to get to it right. But you get better at it. It is important to have the codes correct so that analysis used by management (and RMA reporting if you participate, and we always did) is correct. It was double checked by the credit department.

We referred to the actual lists of codes to get it right.
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#1708322 - 06/08/12 01:04 PM Re: NAICS Code - Loans Doug Hendrickson
HRH Okie Banker Offline
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Oklahoma
Our worksheet, prepared by the front line, asks for the NAICS Code, which allows Credit to input that into the platform system, which in turn gets uploaded to the mainframe at funding.

We do not code our consumer or residential mortgage portfolio, just the commercial and agricultural loans.

We use http://www.naics.com/search.htm which is a free NAICS code search website. On top of that our platform system, which has a field for NAICS Code, has a library of the actual codes. This means that a processor has to at least enter a valid code.
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#1708368 - 06/08/12 02:12 PM Re: NAICS Code - Loans Doug Hendrickson
Andy_Z Offline
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In my small bank, Credit added these. I am not sure the customer would have a clue as we were not working with larger borrowers.
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#1708419 - 06/08/12 03:29 PM Re: NAICS Code - Loans Doug Hendrickson
Dani York, CRCM Offline
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TN
The loan officers and admins determine teh NAICS code and include it on the input sheet. It's added to the record by Ops at upload. The officers use the NAICS.com lookup page, but on business entities, the NAICS code is also generally located on their tax return. We code all loans, including consumer. We code them based on their occupation. This also helps with the new CTR/SAR completion.
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