Are there any threads on Healthcare Lending? This is a new area for us and I was searching for any information available. I also need a policy and don't know where to begin... any help would be appreciated!

TIA

Healthcare Lending - lending to medical professionals?

Healthcare Lending - lending to consumers for medical procedures through their medical care provider?

We don't have a healthcare lending program. The only healthcare lending we do is if that is the loan's purpose noted on the customer's credit application.

Identifying what Healthcare Lending means to your financial institution may give someone a better idea how to respond if they have experience in the product.

Thanks, Dan. This is lending to healthcare professionals, practices and businesses.

Why would your loan policies be any different for healthcare professionals? I have seen these sorts of doctor programs before. I am unsure how anyone gets by the fair lending problems with them since most doctors are still Caucasians.

Doctors have high income, but many are carrying high med-school baggage. Prior to financial advisors, doctors had a fairly poor reputation for money management.

That being said, many lenders are expanding to Professionals" - doctors, nurses, dentists, engineers, accountants, etc. They all have advanced degree requirements, state or federal certifications, and deemed professinals.

Oh yes, I agree, but since when is an advanced degree an underwriting consideration? And what are the demographics of these individuals with advance degrees and certifications. I am black and I do not even have a degree and I make more and have more assets than many of the people that you referred to - and they get special treatment and products and I do not??

Explain the business necessity on that one.

They aren't special products per say. It is more that we have opened a business line that understands the uniqueness of that particular business. They don't get special underwriting or special treatment. Regardless of the income, we place all our customers into the appropriate products. The underwriting is done mostly within the same bounds as a commercial loan. This would also include other products such as treasury services and merchant services, etc. I was thinking because this is a new business line there might also be specific rules - which is what I was searching for - in addition, I wanted to provide enough clear information in our policy to satisfy any examiner that reviewed it. After reading your thoughts, it seems a separate policy might not be necessary.

I assume you have one for workers at McDonald's also? IIMHO - If you have a line of business that specifically pursues these individuals, then you have fair lending issues to worry about due to the demographics of your clientele. You cannot tell me this line of business is not going to cater to these customers differently than someone that does not fall into this group.

Having a specific niche in commercial lending is one thing. Creating niches for consumer lending has its challenges. I am not saying it is impossible, but you need to go into it with your eyes open.