Submitted by sevans on Wed, 11/19/2014 - 4:03pm

NCUA’s Examination Focus

NCUA's review of a risk-based lending programs will focus on safety and soundness issues, regulation compliance, full and fair disclosure, and risk management. At a minimum, examiners will review the following aspects of the risk-based lending program:

  • Are policies and procedures documented and comprehensive?
  • Are policies and procedures followed?
  • Are employees and officials properly trained?
  • How well are overall risks managed?
  • Are reasonable limits established for higher risk loans?
  • Are loan decisions documented in the file?
  • Are quality control measures adequate?
  • Does the credit union have an adequate tracking system?
  • Is the program periodically re-evaluated?
  • Is delinquency monitored by loan tier?
  • Are collections efforts appropriate, consistent, and timely?
  • Does the credit union have a reasonable method for funding the ALL for higher risk loans?
  • Has legal counsel reviewed policies and procedures?
  • Is a credit scoring system being utilized and is the system periodically re-evaluated or retested to maintain predictive validity?
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