FNCR2245

Students will study the evolution of credit in the United States, key regulations, and effective credit risk assessment techniques, including the use of credit scoring models and financial analysis. The curriculum encompasses the fundamentals of direct and indirect lending, corporate and small business lending, as well as mortgage lending principles. Additionally, students will examine emerging alternative financing options and understand marketing strategies to enhance loan visibility. Real-world case studies will provide practical insights into the challenges and decisions faced within various lending contexts. Student Learning Outcomes

• Explain the role of banks in the economy and how their lending practices influence growth and stability.
• Describe the evolution of consumer and commercial credit in the U.S. and how current lending practices developed.
• Analyze key laws and regulations impacting consumer and commercial lending, including compliance for financial institutions.
• Evaluate the characteristics, benefits, and drawbacks of direct and indirect lending from the perspectives of banks, dealers, and consumers.
• Utilize credit scoring models, financial statement analysis, and qualitative factors (the five C's of credit) to assess borrower creditworthiness.
• Explore the fundamentals of consumer credit, including personal loans, credit cards, and related regulatory issues.
• Examine the structures and strategies unique to corporate lending, assessing risks and opportunities in small business lending.
• Investigate the principles of mortgage lending and how external economic factors affect lending decisions.
  
• Apply credit risk measurement techniques and develop strategies to manage problem loans, including recovery methods.
• List the objectives of the loan application process and show how effective marketing can enhance product visibility and application volume.
• Identify primary sources of consumer loan information and outline the credit verification process for accurate borrower assessments.
• Evaluate emerging alternative financing options, such as peer-to-peer lending, crowdfunding, venture capital, and nonprofit grants.
• Analyze challenges in consumer lending, corporate load assessments, and international lending risks.