Retail Lending Examination Procedures

Debt Waiver

Objective: Verify how the product is managed.

Sample size – 30

Open-end and closed-end loans with debt cancellation contracts.

Include loans in both pending and activated status.
Determine whether the accounts are properly managed, i.e., activation process, accounting, re-aging, MIS, etc.
Verify compliance with bank’s policy and procedures.
Verify compliance with 12 CFR 37.

Sample size – 30

Open-end and closed-end loans with debt suspension agreements.

Include loans in both pending and activated status.
Determine whether the accounts are properly managed, i.e., activation process, accounting, re-aging, MIS, etc.
Verify compliance with bank’s policy and procedures.
Verify compliance with 12 CFR 37.