Retail Lending Examination Procedures

Underwriting

Objective: Determine the quality of new loans and risk selection. Determine adherence to lending policy, underwriting standards, and pricing standards.

Sample size – 30 Loans/accounts booked in last 90 days.

  • Include coverage of all significant product types.

  • Include all or target certain acquisition channels.

  • Include different price points.

Sample size – 10 from each significant third-party origination channel Loans/accounts approved and booked in last 90 days.

  • Include all significant third-party loan originators, including dealers and brokers.

Sample size – 30 Loans/accounts declined in last 90 days.

  • Include coverage of all significant product types.

  • Include all or target certain acquisition channels.

  • Focus on applications not automatically denied if credit scoring is used.

Previous: Suggested Transaction Testing Samples Next: Lending Policy Exceptions