FNCR2245

Students will study the essential concepts needed to understand the consumer loan function, including a history of consumer credit, evaluation of credit risks, and the gathering, investigating, and analysis of credit information. Students will study procedures for documenting, servicing, managing, pricing, and marketing flows. Practical examples of loan costs and pricing are provided, along with discussions of different loan products, delivery channels, marketing, and sales.Student Learning Outcomes

• Describe the evolution of consumer credit in the United States, including the development of current lending practices and attitudes.
• Describe key laws or regulations affecting consumer lending.
• List the characteristics, benefits, and disadvantages of direct lending.
• Explain the advantages and disadvantages of indirect lending from bank, dealer, and consumer perspectives.
• Provide examples of how the effective marketing of loan products can increase outstanding loans and application volume.
• Describe the primary sources of consumer loan information and the steps taken in the credit verification process.
• Explain how the five C's of credit are used in credit evaluation and decision-making.
• List the objectives for the bank's formal loan policy statement.