ALEXANDRIA, Va. (10/9/13)--An overview of risk-based lending, and details on how that practice has become an important part of consumer lending, will be provided in an Oct. 22 National Credit Union Administration webinar.
The free webinar, entitled "Risk-Based Lending--More than a Loan Pricing Tool," is scheduled to begin at 2 p.m. (ET).
Tom Penna, NCUA Office of Small Credit Union Initiatives Economic Development Specialist, Susan George, CEO of Lake Shore FCU, Angola, N.Y., and Kelly Haaksma, CEO of Greater Chautauqua FCU, Falconer, N.Y., will co-host the webinar.
George and Haaksma will discuss how their credit unions have used risk-based loans to serve their members, increase loan volume, and create new sources of income while mitigating unnecessary risks.
The webinar will also feature useful reporting tools that a board of directors and management can use to get a better understanding of the risks present in a credit union's loan portfolio.
The CUNA Lending Council has noted that risk-based lending helps credit unions reach out to higher-risk borrowers, keeping them from predatory lenders, and allows credit unions offer lower rates to the most creditworthy members, rewarding their excellent credit habits and keeping them from the competition.
However, the Council has advised that risk-based lending can be complex. It is important for credit unions to do their homework before implementing it, the Council wrote. Sound planning, specialized expertise, reliable monitoring and control systems, and proper pricing are key components of any risk-based lending plan, the Council stressed.
Webinar participants may submit questions to the NCUA in advance by sending an e-mail to WebinarQuestions@ncua.gov
. The subject line of the e-mail should read, "Risk-Based Lending Webinar."
To register for the NCUA webinars, use the resource link.