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Lending Questionaire
This questionaire is designed to assist
committee members with interacting with management on very specific issues relating to the
credit union operations. Annually, at least one committee member should devote the time to
meet with the CEO and/or lending manager to review each question. A "YES" answer
would suggest that the credit union has sound practices relating to that specific
question. A "NO" answer would imply some corrective actions needs to be
considered. Do a print sceen of this page and
review all questions with credit union management.
| #1 When promoting credit cards,
does the credit union disclose APR, fees, grace periods, billing cycle, balance
computation method and payment procedures? |
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| #2 Does each loan get posted to
member’s account on the same datethe promissory note is signed? |
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| #3 Does the promissory note for
closed end loans disclose the payment plan in terms of frequency and amount? |
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| #4 Does the promissory note for
closed end loans disclose the annual percentage rate (APR) and the daily rate factor? |
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| #5 Does the loan agreement
adequately describe collateral? |
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| #6 Are loans that are paid in full
marked as such and a copy returned to the member? |
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| #7 Are all approved VISA applicants
given a disclosure statement regarding security interests, billing rights, finance charges
and fees? |
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| #8 Are monthly or periodic
statements mailed to all members with open end credit and a loan balance of at least
$1.00? |
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| #9 With respect to home equity line
of credits (HELOC), are applicants given disclosures that describe the specifics of the
program? |
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| #10 When a loan is refinanced are
new disclosures provided to the member? |
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| #11 For closed end mortgage loans
is the member given a "right of rescission" disclosure? |
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| #12 Are all loans to individual
members made for amounts which do not exceed 10 percent(aggregate loans per member) of the
credit union’s unimpaired capital? |
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| #13 Are the all maturities for
personal closed end loans shorter than twelve years? |
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| #14 Do all members who have applied
for a loan and have been denied, receive a "reason for denial" within a
reasonable time period? |
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| #15 Does the credit union make it a
practice of never denying a member a loan because they are too old? |
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| #16 Are interest
calculations periodically performed on members' loan accounts? |
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| #17 Is a delinquent
loan report prepared monthly and reviewed by the board of directors? |
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| #18 Have all loans to officials and
employees been reviewed, properly documented and approved? |
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| #19 Are any loans to officials or
employees delinquent? |
____ |
| #20 Do all loan files contain
evidence of a loan application, income verification, credit report and debt-income
calculation? |
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| #21 Are all loans properly approved
and recorded in the form of minutes? |
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| #22 Is the allowance for loan loss
(reserve for bad loans) adequately funded and it there documentation to support this
funding? |
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| #23 Are charge-offs and recoveries
properly recorded? |
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| #24 Is there a procedure for
turning accounts over to a collection agency? |
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| #25 Does the supervisory committee
periodically confirm delinquent accounts that have been turned over for collection? |
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