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#2254868 - 06/04/21 06:00 PM Website Requirements for Risk Based Pricing
Community Banker Offline
100 Club
Joined: Nov 2008
Posts: 129
Consumer loan department would like to update the website and provide rate ranges. These are all close ended loans. They use a risk based pricing model. Should I be providing a payment example? And if so, how do I determine what rate to provide the payment example? hi-low-mid?

I know I should include the standard -- all loans are subject to credit approval; rates and terms are subject to change at any time; APRs vary based on credit worthiness of the applicant. Is there anything I am forgetting?

Thank you for your help!

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#2254872 - 06/04/21 06:15 PM Re: Website Requirements for Risk Based Pricing Community Banker
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,220
Galveston, TX
I assume you really mean APR ranges, as interest rates cannot be listed without the APR? While there is some flexibility if you have varying terms, I am not aware of that flexibility when you have varying APRs.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2254873 - 06/04/21 06:21 PM Re: Website Requirements for Risk Based Pricing Community Banker
Community Banker Offline
100 Club
Joined: Nov 2008
Posts: 129
Yes, correct. Sorry I meant to say APR. So if I follow you, and they want to move forward with this, I should have payment examples for the entire range?

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#2254878 - 06/04/21 06:30 PM Re: Website Requirements for Risk Based Pricing Community Banker
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,220
Galveston, TX
I would just go with a statement that your actual interest rate and APR is based on your credit score and it may be higher or lower. You are entering into an advertising nightmare.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2254885 - 06/04/21 07:28 PM Re: Website Requirements for Risk Based Pricing Community Banker
Community Banker Offline
100 Club
Joined: Nov 2008
Posts: 129
I can't wait. smile

Thanks for your help!

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