Retail Lending Examination Procedures

Lending Policy Exceptions

Objective: Evaluate the quality and appropriateness of exceptions to lending policy.

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

  • Include all exception codes.

  • Include coverage of all significant product types.

  • Include loans with exceptions from all significant third-party loan originators, including dealers and brokers.

  • If exception coding is deficient, filter new loans for exceptions to loan-to-value, debt-to-income, credit history, etc. and select sample.

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