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#66134 - 03/07/03 04:45 PM
Re: declining a consumer loan
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10K Club
Joined: Oct 2000
Posts: 27,763
On the Net
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You can't say you don't offer that product, because you do. I assume there are no possibilities of discriminatory allegations here.
I believe that if you can make a profit, you do the deal and you do it right. You might ask for the other business of the person, tell them you want at least a DDA and you can price your loan according to risk and your desire for the credit. But I'd personally hate to refuse a good loan.
FYI, weather is the same in Killeen. Mid-70s later, possibly up to 80 and not a cloud in the sky.
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AndyZ CRCM My opinions are not necessarily my employers. R+R-R=R+R Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell
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#66135 - 03/07/03 04:52 PM
Re: declining a consumer loan
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Power Poster
Joined: May 2002
Posts: 3,608
Near the Land of Enchantment
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I think you might have a tough time defending the denial of this one. If you never made the nasty things, then you could deny based on not offering the product requested. Since you have been known to make them, though - that kind of rules that one out.
Have you evaluated the collateral? How about the first lien amount? Maybe you'll luck out and they'll have a big first or a low-value property!
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Opinions my own.
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#66136 - 03/07/03 04:55 PM
Re: declining a consumer loan
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10K Club
Joined: Aug 2002
Posts: 34,318
under the Lone Star
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Thanks Andy, the lenders were going to ask for her other business (which they tell me is substantial). I know of no discrminatory elements in this deal, but that isn't to say she could not claim one or two of the protected classes. I am with you, we offer the product out to the public, she applies and meets the underwriting standards, so we can't pass the business up because we are afraid of the HEL product and this person isn't a current customer. Thanks very much.
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Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.
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#66137 - 03/07/03 04:58 PM
Re: declining a consumer loan
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10K Club
Joined: Aug 2002
Posts: 34,318
under the Lone Star
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She has a huge first but the amount requested and the first are below 80% loan to value, which is the standard in Texas. I think the lenders are stuck and the litigation risk outweighs the credit risk. Thanks vey much for the input.
_________________________
Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.
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#66138 - 03/07/03 05:10 PM
Re: declining a consumer loan
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10K Club
Joined: Oct 2000
Posts: 27,763
On the Net
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Forget the litigation risk at this point and focus on the income and profitability of the loan. We are here to make money. This is not a rare loan product anymore. Get a good attorney and take your time.
Make a buck, satisfy a new customer and develop a new relationship.
_________________________
AndyZ CRCM My opinions are not necessarily my employers. R+R-R=R+R Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell
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#66139 - 03/07/03 09:23 PM
Re: declining a consumer loan
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Diamond Poster
Joined: Nov 2000
Posts: 1,820
Southern California
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The original poster said that they only make equitylines to customers. Could they decline it because the applicant does not have an account?
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Dolly Nugent CRCM Opinions expressed are my own.
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#66140 - 03/07/03 11:24 PM
Re: declining a consumer loan
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10K Club
Joined: Oct 2000
Posts: 27,763
On the Net
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Not an equity line, an equity loan. And part of the suggestion was to ask for additional business.
If they do not have a policy requiring deposit accounts, I would be hard pressed to say they should have that requirement for some products and not others and there was no indication of that. They just don't like the detailed work that has to go into one of these loans and as a result do them rarely and only for better customers.
_________________________
AndyZ CRCM My opinions are not necessarily my employers. R+R-R=R+R Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell
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#66141 - 03/08/03 05:15 PM
Re: declining a consumer loan
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Platinum Poster
Joined: Nov 2001
Posts: 713
Laramie, WY. USA
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Go for it Burback! We used to be ascared of HELOCs as well, but that was before we had a compliance officer, (namely, me). Immerse yourself, become an expert, decide on a product, prepare early disclosures, train and you'll not only be fine, your HELOC stress level will go way down.
It takes a little time, but its worth it. We don't shy away anymore, we market HELOCs and they are quickly becoming a great money maker. Consumers are looking for ways to consolidate debt and deduct the interest. Get on the wave and ride.
Good Luck!
Wyogirl
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