Private Banking

Posted By: beegee

Private Banking - 05/17/17 04:40 PM

We are looking at a Private Banking Program to high net worth folks or recently graduated individuals with potential for high earnings; i.e. - doctors, lawyers, etc.

If we are giving preferential treatment to these guys - what do we need to be aware of from a fair lending aspect?

I was not able to find anything specific on private banking and fair lending risks.
Posted By: rlcarey

Re: Private Banking - 05/17/17 05:29 PM

If you do a BOL forum search - limit the search to the Fair Lending forum and search "private banking" with the quotes, you will find a lot of threads.
Posted By: Rocky P

Re: Private Banking - 05/17/17 10:26 PM

Would the bank be treating someone differently? Just because someone has some dollars does not mean they are credit worthy, or can be written to different underwriting standards, or have different expectations on repayment. The biggest potential for differences (IMHO) would be on exceptions in decisions and pricing, and in collections. John Doe goes past due 2 months and you pop the car. Harvey Wallbanger III goes past due and everyone turns an eye because he's important, and the PB officers don't want to offend a great customer.

Like Randy mentioned, there are many posts.