The Lending Process:

• List four types of credit and how members use them
• Describe the two major differences between closed-end and open-end credit
• Define collateral and explain how it is used to secure a loan
• Explain the difference between fixed and variable interest rates
• Identify how variable interest rates are set
• Outline the four steps in the lending process

Laws and Regulations:

• Explain how government agencies implement laws through regulations
• Analyze loan situations for ways to avoid discriminating on the bases prohibited by the Equal Credit Opportunity Act (ECOA)
• Describe the purpose of the Truth-in-Lending Act and what type of credit it covers
• Recognize the purposes of the Fair Credit Billing Act and Fair Credit Reporting Act
• Highlight the major relationships between loan policies, laws and regulations

Interview and Application:

• Outline four types of information requested from loan applicants
• Perform three actions to prepare for the loan interview
• Explain how objectivity and confidentiality are critical to a successful interview
• Describe six key techniques for conducting an effective loan interview

Loan Underwriting:

• List and explain five factors that indicate creditworthiness
• Explain four factors to evaluate the information on a credit report
• Summarize how credit scores are determined and how they aid underwriting
• Identify two other methods used to verify information on the loan application
• List four "red flags" that may indicate a lack of creditworthiness

Loan Decision and Closing:

• List the time frames for informing members of loan decisions and how long documentation must be retained
• Define counteroffer and typical alternatives credit unions offer
• Explain the purpose and responsibilities of guarantors and cosigners
• Define the term adverse action and describe situations when it occurs
• Describe the purpose of the promissory note, security agreement, and Truth-in-Lending disclosure