This may sound crazy but I really need to know what precisely constitutes indirect lending.

Example 1: car dealer takes application, submits to bank, bank makes credit decision, dealer prepares note on their paper with an assignment to the bank, car dealer closes the loan. Direct or indirect? Also, in this example, if this is not an indirect loan should it be be on the bank's note?

Example 2: a consumer or commercial dealer takes application, submits to bank, bank makes credit decision, bank provides the note, dealer closes the loan. Direct or indirect?

Please share your source information for your response. Is it from regulatory guidance, legal guidance, etc.

Thanks so much!

http://www.fdic.gov/regulations/examinat...to_lending.html


have you read this?