Adverse_Action

Adverse Action The last few presidential administrations there have made several changes in the way banks are required to notify borrowers that they have been denied a loan. Where I work we call the process adverse action. This has happens once there has been a decision on a file the lender must inform the borrowers of credit decision, how the decision was ascertain and what their rights are under federal lending regulations. Every lender has had to interpret what each new requirement means to their business. There are several ways technology can be used to I ensure that the regulations are followed. SharePoint could used to track the request, verify that the proper documents are attached and all information that is needed to correctly process they request. Currently the process that the loan administration team follows for the business banking line of business is a very manual process that entails paper, scanning, e-mail, and spreadsheet tracking. This very time-consuming, manual process does not ensure that the lenders are following the process, correctly completing the paperwork, or submitting all the required information. The process starts when a Business lender has denied a loan. The lender completes and mails the denial letter to the commercial borrower, letting the business know that the loan has been denied. Once these forms are mailed, the lender is required to submit the documentation and all other information to Loan administration for document retention. Business banking is using a workbook to track their loans they also move it from the pipeline tab on the excel workbook to the denied tab. It is hit or miss on whether the lender submits the required documents for Audit review. Fifty percent of the files that are submitted are missing a document or a signature, which then becomes a task for Loan Admin team to keep following up with the lenders until the required information is obtained. To the lenders this is not a top priority. This is the first process for the department that I am creating a task on SharePoint to assist in tracking, requesting, completing, auditing, and adverse action. This process will still involve paperwork but the request will be generated in SharePoint. Requiring the lender to complete certain question, and upload the required documents for retention. Business banking has the easiest process to convert because there is less government regulation around business loans compared to consumer loans. In our bank business lenders are responsible for the majority of the contact with the borrower. Consumer loans are different. There are more things to track because of the government regulations. There are fair lending regulations that dictate that borrowers must receive certain credit disclosures at the time the credit report is obtained. Currently the system that is being utilized is for the application input, disclosure printing, along with several report. Technology could step in and help when it comes to requesting for adverse action to be sent to the borrower. SharePoint could be the system to of what needed from the lender is more detailed then that of the business banking. Due to the extensive regulations on non commercial lending is a little more intense. My lack of knowledge of how to set up parent and child drop down lists within SharePoint have this at a standstill. Once the lender submits the file we will be able to use SharePoint to notify the lender if anything is missing something, by assigning back to the lender with notes of what is missing. This can keep the task open and waiting for completion. With the input of the Adverse Action request on SharePoint lenders will be able to see what they have submitted, loan administration can track what they need to do or have completed, and management can run reports off the information on the site for anything they wish to develop. The file sharing capabilities of SharePoint is a big plus with this the documents do not need to be emailed, faxed, or put in the postal mail. They are attached to the request and can be accessed until the point of transition into imaging system down the road. SharePoint can help this area in several ways. Starting with adverse action is on the best processes to start with. Moving forward with utilizing SharePoint to track adverse action with help mitigate the risk that are tied to the consumer lending industry.