Thread Options
#2211009 - 04/12/19 06:02 PM Stated, but not proven, revenue for small business
Lori01 Offline
100 Club
Joined: Jan 2007
Posts: 138
VT
We have launched a new program for some small business lending, usually equipment or LOCs. In the program we don't require proof of revenue, it's more credit score or LTV driven.
I know if we don't ask for revenue at all then I would use a "3"; but if we do ask for it but don't require any proof can I use the stated amount? This would almost always result in using code "1" as these are very small business asking for very small loans. We are using what they tell us for a DTI figure, but again getting no proof.

Return to Top
CRA
#2211049 - 04/13/19 04:11 AM Re: Stated, but not proven, revenue for small business Lori01
Inspector Offline
Gold Star
Joined: Apr 2016
Posts: 254
I don't think basing your reporting on an unverified number would be a problem. If it's the number you relied on then I think you are good to use that number to determine which code to use.
_________________________
Opinions expressed are my own and do not reflect legal advice or the opinions of my employer.

Return to Top
#2211535 - 04/18/19 06:29 PM Re: Stated, but not proven, revenue for small business Lori01
mrogersfib Offline
100 Club
Joined: Aug 2018
Posts: 116
The "Size" test is based off of whatever your bank used in it's credit decision. If income was not used then unknown. If your bank isn't collecting documentation around income for this product, then that's your credit policy. It would mostly be based off of how the loan was reported in your call report.

Return to Top