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#2001193 - 03/12/15 02:59 PM Conduct site visits at all the locations?
BSAkpo Offline
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BSAkpo
Joined: Jul 2014
Posts: 52
US
Hello,
When conducting a site visit for a new customer, do you go to every business location? A potential loan customer has 5 locations and 3 storage units out of state. The loan officers conducted site visits at two locations. I was unable to find specifics in the FFIEC manual if every location is mandatory to review for HSBs.
Thank you.

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#2001205 - 03/12/15 03:26 PM Re: Conduct site visits at all the locations? BSAkpo
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
HSBs???
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#2001206 - 03/12/15 03:33 PM Re: Conduct site visits at all the locations? BSAkpo
BSAkpo Offline
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BSAkpo
Joined: Jul 2014
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High risk business

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#2001215 - 03/12/15 04:02 PM Re: Conduct site visits at all the locations? BSAkpo
rlcarey Online
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rlcarey
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Galveston, TX
Wouldn't that be a HRB??

Who says you even have to do a site visit for a high risk business. It is all a matter of perceived risk and what a specific site visit might tell you about the customer. I would hope if you are going to make this person a loan that your credit underwriting policies would require some assurances that a customer actually owns the assets they say they do and that after a thorough investigation regarding their financial statements and other credit information that they are operating on a legitimate basis.
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#2001241 - 03/12/15 05:37 PM Re: Conduct site visits at all the locations? BSAkpo
PrimeTime Offline
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PrimeTime
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BSAkc -- we only conduct site visits on a case-by-case basis. This is dependent on risk as mentioned above, and is escalated by certain activity types (i.e. check cashing). In addition, site visits are performed in the event that a customer is obtaining a high risk service such as Remote Deposit, due to the fact that we like to see their storage facility for the checks in order to gauge the risk.

For an average business, we simply perform a google search to ensure that the business address is truly where they are stated to be, and do various searches on the internet to verify that information. In the event this is not possible a site visit may be considered, but to answer the initial question of "do you perform a site visit for every new customer" the answer would be no.
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#2001246 - 03/12/15 05:45 PM Re: Conduct site visits at all the locations? BSAkpo
BSAkpo Offline
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BSAkpo
Joined: Jul 2014
Posts: 52
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Rlcarey - excuse my spelling error

Thank you for your responses.
Last edited by BSAkc; 03/12/15 05:47 PM.
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#2001427 - 03/13/15 01:45 PM Re: Conduct site visits at all the locations? BSAkpo
Always In Training Offline
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Joined: Jul 2006
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Where the Green Grass Grows
I used Google Earth and zoomed down to street view last year when working on my risk assessments. Not for all new customers though. We're a relatively small bank, and I personally know many of our customers, but for those branches a little further away, it was a wonderful thing!

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#2001449 - 03/13/15 02:11 PM Re: Conduct site visits at all the locations? BSAkpo
PrimeTime Offline
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PrimeTime
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Just keep in mind that 99% of the time Google Earth is about 2+ years behind on their images, so it's not necessarily the most current views of the locations!
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