Credit Scoring & Analysis Lending School
(Three-day training program designed for management, lending managers, loan officers and processors (veterans and new) MSRs/tellers, and Collection Staff)
This program is designed to help improve loan decisions; increase revenue and profitability (ROA); increase loan opportunities; increase membership growth and retention; and minimize delinquencies and loan losses.
In this session, participants will learn how to develop a lending philosophy that can lead to better loan decisions, more loan opportunities, and increased profitability. Participants will discover how to use the credit report to capture more loan opportunities and build member loyalty; gain knowledge of how credit scores are calculated and what impacts the credit score; discover the best way to analyze the credit report to better assess risk; learn how to evaluate risk and make better loan decisions; understand the correct way to analyze a member’s total debt ratio; recognize and analyze bankruptcy indicators; and determine the best approach to close your loans to make sure you maintain preferred payment status with your members!
Day One
- Explore a lending philosophy that can lead to more loan opportunities and better loan decisions
- Discover how you can use the credit report to build member loyalty and capture more loan opportunities
- Learn how to create memorable member experiences that bring in more loan opportunities
- Explore the “Art of Communication” and key questions to ask to engage members in a conversation
- Identify key questions to ask to help you determine the RIGHT solutions to offer members
- Explore proven strategies to better serve your members to build strong relationships and increase profitability and retention
- Learn how to create Win/Win/Win solutions: a win for the credit union, a win for the member, and a win for the employee
- Identify solutions that will capture more profitable loans for the credit union, raise members’ credit scores, lower their monthly outpay, and eliminate high-interest rate credit card debt
Classroom Exercises:
- Engage in the RIGHT conversation
- Ask the RIGHT questions
- Offer the RIGHT solutionsI
- Identify solutions that increase loan opportunities for the credit union as well as raise members’ credit scores, lower their monthly out pay, and eliminate high-interest-rate credit card debt
Day Two
- Discover which items are not included in the credit score
- Evaluate what can hurt or improve a score
- Gain knowledge of how credit scores are calculated
- Determine how to calculate capacityFind the best approach to teach your members how to improve their credit score
- Discover the correct way to analyze the credit report
- Understand the correct way to analyze a member’s total debt ratio
- Understand the risks and benefits of your C, D, and E members
- Identify key questions to ask members
- Learn what you can do to turn a high risk member into a low risk member
- Determine the best approach to close a loan to ensure the credit union always gets paid
Classroom Exercises:
- Calculate capacity and impact on credit score
- Review and analyze (before and after) credit reports with credit scores that were increased through the credit score analysis process
Day Three
- Discover the predictors of bankruptcy
- Learn how to evaluate risks and make better loan decisions without using the credit score
- Identify key high risk factors and low risk factors to build a loan (member notes) for better decisions
- Determine the right approach to have when underwriting member loan applications
- Determine risk and decision factors for secured and unsecured lending
- Understand the correct way to analyze a member’s total debt ratio
- Discover the predictors of bankruptcy
- Determine the best approach to close your loans
Day Four
Classroom Exercises:
Put into practice your knowledge to help your members, capture more loans, and make better loan decisions
- CSA Exercise: Analyze credit reports, identify opportunities, identify high risk factors and low risk factors, build loan, and close loans the right way to make sure you always get paid and you capture more loans!!!
- Guess the Credit Score Exercise: Using the “Credit Score Point System,” to determine the actual credit score of a credit report based on specific criteria identified that has negatively impacted the score.
- Role Play: Creating a Memorable Member Experience
- Role Play: Conduct a credit score analysis
- Role Play: Closing high risk members
- Role Play: Offering Payment Protection