Lisa Hochgraf at CUES Skybox is asking a question all lenders, bank or credit union, need to be asking. Or more appropriately, all lending managers.
Must we get better at lending to borrowers with less-than-perfect credit? I think so.
Here are two suggestions:
- Increase the number of year’s you review…from two to three years…or three to four.
- Consider including year-to-date information in your averages.
- If you are using year-to-date information, consider requiring more reliable statements: CPA-prepared instead of borrower-prepared.
- If you already require CPA-prepared, perhaps reviewed instead of compiled, or audited instead of reviewed.
What is your bank or credit union doing to adjust guidelines to the current realities?
If you are not, yet, do you think you will?
What sign are you waiting for to tell you that we are moving into recovery?